| 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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December 31, 2024 |
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December 31, 2023 |
| Reverse Lines: |
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| April 2025 - October 2026 |
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Secured Overnight Financing Rate (“SOFR”) + applicable margin |
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First and Second Lien Mortgages |
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$ |
1,080,000 |
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$ |
438,328
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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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381,034 |
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356,915
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344,367 |
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| October 2027 |
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SOFR + applicable margin |
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HECM MSR |
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70,000 |
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69,231
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69,231 |
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| October 2025 |
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SOFR + applicable margin |
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Unsecuritized Tails |
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40,000 |
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19,947
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23,620 |
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| Subtotal reverse lines of credit |
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1,571,034 |
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884,421
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870,136 |
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| Mortgage Lines: |
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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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33,826 |
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33,826
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36,208 |
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| N/A |
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N/A |
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First Lien Mortgages |
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— |
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—
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2,135 |
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| Subtotal mortgage lines of credit |
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33,826 |
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33,826
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38,343 |
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| Commercial Lines: |
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| N/A |
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N/A |
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Mortgage Related Assets |
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— |
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—
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20,000 |
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| Total other financing lines of credit |
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$ |
1,604,860 |
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$ |
918,247
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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 December 31, 2024. The lines of credit with no capacity are terminated as of December 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 |
The maximum allowable distributions available to the Company are based on the most restrictive financial covenant ratios and are presented in the tables below (in thousands, except for ratios):
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| Financial Covenants |
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Requirement |
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December 31, 2024 |
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Maximum Allowable Distribution |
| FAR |
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| Adjusted Tangible Net Worth |
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$ |
250,000
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$ |
501,883
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$ |
251,883
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| Liquidity |
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40,129
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45,512
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5,383
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| Leverage Ratio |
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6:1 |
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2.7:1 |
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276,823
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| FAH |
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| Adjusted Tangible Net Worth |
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$ |
200,000
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$ |
502,744
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$ |
302,744
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| Liquidity |
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40,000
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47,794
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7,794
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| Leverage Ratio |
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10:1 |
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2.9:1 |
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355,886
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| Financial Covenants |
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Requirement |
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December 31, 2023 |
|
Maximum Allowable Distribution |
| 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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