Quarterly report pursuant to Section 13 or 15(d)

Other Financing Lines of Credit (Tables)

v3.22.1
Other Financing Lines of Credit (Tables)
 3 Months Ended
Mar. 31, 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)
 
  
March 31,
2022
 
  
December 31,
2021
 
Mortgage Lines:
  
      
 
      
  
      
  
      
  
      
April 2022 - June 2023
  
 
 LIBOR/SOFR +
applicable margin
 
 
 
 
 First Lien
Mortgages
 
 
  
$
3,225,000
 
  
$
1,431,784
 
  
$
1,802,348
 
May 2022 - November 2022
  
 

 		 LIBOR/
AMERIBOR +
applicable margin
 
 
 
 
MSRs
 
  
 
95,329
 
  
 
110,885
 
  
 
138,524
 
March 2026
  
 
 LIBOR +
applicable margin
 
 
 
 
 Mortgage Related
Assets
 
 
  
 
150,000
 
  
 
51,269
 
  
 
55,666
 
 
  
      
 
      
  
 
 
 
  
 
 
 
  
 
 
 
Subtotal mortgage lines of credit
 
 
      
  
$
3,470,329
 
  
$
1,593,908
 
  
$
1,996,538
 
   
 
      
  
 
 
 
  
 
 
 
  
 
 
 
Reverse Lines:
                                            
April 2022 - April 2023
  
 
 LIBOR +
applicable margin
 
 
 
 
 First Lien
Mortgages
 
 
  
$
1,275,000
 
  
$
887,435
 
  
$
714,013
 
April 2022 - September 2023
  
 

 		 Bond accrual rate
+
applicable margin
 
 
 
 
 
 Mortgage Related
Assets
 
 
  
 
397,500
 
  
 
300,834
 
  
 
297,893
 
February 2024
  
 
 LIBOR +
applicable margin
 
 
 
 
MSRs
 
  
 
90,000
 
  
 
70,365
 
  
 
78,952
 
May 2022
  
 
 Prime + .50%;
6% floor
 
 
 
 
 Unsecuritized
Tails
 
 
  
 
50,000
 
  
 
44,257
 
  
 
38,544
 
 
  
      
 
      
  
 
 
 
  
 
 
 
  
 
 
 
Subtotal reverse lines of credit
 
 
      
  
$
1,812,500
 
  
$
1,302,891
 
  
$
1,129,402
 
   
 
      
  
 
 
 
  
 
 
 
  
 
 
 
Commercial Lines:
  
      
 
      
  
      
  
      
  
      
June 2022 - August 2022
  
 
 LIBOR/SOFR +
applicable margin
 
 
 
 

 		 Encumbered
Agricultural
Loans
 
 
 
  
$
125,000
 
  
$
25,036
 
  
$
25,127
 
April 2022 - January 2024
  
 
 LIBOR +
applicable margin
 
 
 
 
 First Lien
Mortgages
 
 
  
 
432,500
 
  
 
237,921
 
  
 
167,159
 
August 2022
  
 
10%
 
 
 
 Second Lien
Mortgages
 
 
  
 
30,000
 
  
 
30,000
 
  
 
24,175
 
N/A
  
 
 LIBOR +
applicable margin
 
 
 
 
 Mortgage Related
Assets
 
 
  
 
—  
 
  
 
—  
 
  
 
5,041
 
 
  
      
 
      
  
 
 
 
  
 
 
 
  
 
 
 
Subtotal commercial lines of credit
 
 
      
  
$
587,500
 
  
$
292,957
 
  
$
221,502
 
   
 
      
  
 
 
 
  
 
 
 
  
 
 
 
Total other financing lines of credit
 
 
      
  
$
5,870,329
 
  
$
3,189,756
 
  
$
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 March 31, 2022.
Summary of maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios
As of March 31, 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
 
  
March 31, 2022
 
  
Maximum Allowable
Distribution
(1)
 
FAM
  
      
  
      
  
      
Adjusted Tangible Net Worth
(2)
   
$
225,000
 
   
$
243,900
 
   
$
18,900
 
Liquidity
   
 
55,000
 
   
 
68,451
 
   
$
13,451
 
Leverage Ratio
   
 
15:1
 
   
 
10.2:1
 
   
 
78,327
 
Material Decline in Lender Adjusted Net Worth:
                           
Lender Adjusted Tangible Net Worth (Quarterly
requirement)
(3)
   
$
161,235
 
   
$
301,073
 
   
$
139,838
 
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement)
(3)
   
 
120,432
 
   
 
301,073
 
   
$
180,641
 
FAR
                           
Adjusted Tangible Net Worth
(2)
   
$
417,826
 
   
$
452,613
 
   
$
34,787
 
Liquidity
   
 
20,000
 
   
 
113,656
 
   
$
93,656
 
Leverage Ratio
   
 
6:1
 
   
 
4.3:1
 
   
$
126,542
 
 
(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.