Annual report pursuant to Section 13 and 15(d)

Other Financing Lines of Credit (Tables)

v3.22.0.1
Other Financing Lines of Credit (Tables)
 12 Months Ended
Dec. 31, 2021
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 (dollars in thousands):    
                                 
                 
Outstanding borrowings at
  
                 
December 31,
  
                 
2021
    
2020
  
Maturity Date
  
Interest Rate
  
Collateral Pledged
  
Total
Capacity
(1)
    
Successor
    
Predecessor
  
Mortgage Lines:
                      
 
        
March 2022 - June 2023
   LIBOR/SOFR + applicable margin   First Lien Mortgages   $ 3,625,000    
$
1,802,348
 
   $ 1,997,464  
March 2026
   LIBOR/AMERIBOR + applicable margin   MSRs     150,000    
 
138,524
 
     —  
February 2022 - March 2022
   LIBOR + applicable margin   Mortgage Related Assets     101,559    
 
55,666
 
     —  
 
          
 
 
    
 
 
    
 
 
  
Subtotal mortgage lines of credit
           $ 3,876,559    
$
1,996,538
 
   $ 1,997,464  
 
          
 
 
    
 
 
    
 
 
  
Reverse Lines:
                                
March 2022 - April 2023
   LIBOR + applicable margin   First Lien Mortgages   $ 1,325,000    
$
714,013
 
   $ 477,637  
April 2022 - September 2023
   Bond accrual rate + applicable margin   Mortgage Related Assets     398,729    
 
297,893
 
     252,880  
February 2024
   LIBOR + applicable margin   MSRs     90,000    
 
78,952
 
     —  
April 2022
   Prime + .50%; 6% floor   Unsecuritized Tails     50,000    
 
38,544
 
     37,442  
 
          
 
 
    
 
 
    
 
 
  
Subtotal reverse lines of credit
           $ 1,863,729    
$
1,129,402
 
   $ 767,959  
 
          
 
 
    
 
 
    
 
 
  
Commercial Lines:
                                
February 2022 - November 2023
   LIBOR/SOFR + applicable margin   Encumbered Agricultural Loans   $ 225,000    
$
25,127
 
   $ 52,300  
August 2022 -September 2022
   LIBOR + applicable margin   First Lien Mortgages     545,000    
 
167,159
 
     128,134  
August 2022
   10%   Second Lien Mortgages     25,000    
 
24,175
 
     21,475  
N/A
   LIBOR + applicable margin   Mortgage Related Assets     5,041    
 
5,041
 
     6,411  
 
          
 
 
    
 
 
    
 
 
  
Subtotal commercial lines of credit
           $ 800,041    
$
221,502
 
   $ 208,320  
 
          
 
 
    
 
 
    
 
 
  
Total other financing lines of credit
           $ 6,540,329    
$
3,347,442
 
   $ 2,973,743  
       
 
 
    
 
 
    
 
 
  
 
(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, 2021.
Summary of maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios
As of December 31, 2021 (Successor), 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):

Successor
 
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
(2)
   
$
417,826
 
   
$
527,443
 
   
$
109,617
 
Liquidity
   
 
20,000
 
   
 
23,845
 
   
$
3,845
 
Leverage Ratio
   
 
6:1
 
   
 
2.9:1
 
   
$
264,134
 
Material Decline in Lender Adjusted Net Worth:
                           
Lender Adjusted Tangible Net Worth (Quarterly requirement)
   
$
357,100
 
   
$
527,443
 
   
$
170,343
 
Lender Adjusted Tangible Net Worth
(Two-Consecutive
Quarterly requirement)
   
 
268,828
 
   
 
527,443
 
   
$
258,615
 
 
(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, 2020 (Predecessor), 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):
                         
Predecessor
  
Financial Covenants
   
Requirement
     
December 31, 2020
     
Maximum Allowable
Distribution
(1)
  
FAM
                           
Adjusted Tangible Net Worth
(2)
    $ 125,000      $ 289,163      $ 164,163  
Liquidity
      40,000        56,775        16,775  
Leverage Ratio
      15:1        9.3:1        110,267  
Material Decline in Lender Adjusted Net Worth:
                           
Lender Adjusted Tangible Net Worth (Quarterly requirement)
(3)
    $ 210,428      $ 289,163      $ 78,735  
Lender Adjusted Tangible Net Worth
(Two-Consecutive
Quarterly requirement)
(3)
      93,763        289,163        195,400  
FACo
                           
Adjusted Tangible Net Worth
    $ 85,000      $ 126,672      $ 41,672  
Liquidity
      20,000        46,385        26,385  
Leverage Ratio
      6:1        1.7:1        90,782  
FAR
                           
Adjusted Tangible Net Worth
    $ 300,000      $ 474,128      $ 174,128  
Liquidity
      20,000        36,425        16,425  
Leverage Ratio
      5.5:1        2.5:1        258,615  
Material Decline in Lender Adjusted Net Worth:
                           
Lender Adjusted Tangible Net Worth (Quarterly requirement)
    $ 314,091      $ 474,128      $ 160,037  
Lender Adjusted Tangible Net Worth
(Two-Consecutive
Quarterly requirement)
      205,619        474,128        268,509  
 
(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.