Quarterly report pursuant to Section 13 or 15(d)

Other Financing Lines of Credit (Tables)

v3.21.2
Other Financing Lines of Credit (Tables)
 9 Months Ended
Sep. 30, 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
 
 
  
 
 
 
 
 
  
 
 
  
September 30,
2021
 
  
December 31,
2020
 
Maturity Date
  
Interest Rate
 
 
Collateral Pledged
 
  
Total
Capacity
(1)
 
  
Successor
 
  
Predecessor
 
Mortgage Lines:
  
 
  
  
 
  
October 2021 - June 2023
(2)
      LIBOR +
applicable margin		  
 		     First Lien
Mortgages		  
 		    $ 3,575,000     
$
1,783,544
      $ 1,997,464  
March 2026
      LIBOR +
applicable margin		  
 		     MSRs        150,000     
 
117,736
        —    
December 2021 - November 2022
      LIBOR +
applicable margin		  
 		     Mortgage Related
Assets		  
 		      87,106     
 
69,877
        —    
                     
 
 
     
 
 
     
 
 
  
Subtotal mortgage lines of credit
 
            $ 3,812,106     
$
1,971,157
      $ 1,997,464  
                     
 
 
     
 
 
     
 
 
  
Reverse Lines:
                                            
October 2021 - August 2022
(2)
      LIBOR +
applicable margin		  
 		     First Lien
Mortgages		  
 		    $ 1,200,000     
$
620,418
      $ 477,637  
April 2022 - September 2023
     
 		 Bond accrual rate
+ applicable
margin		  
 
 		     Mortgage Related
Assets		  
 		      398,719     
 
278,924
        252,880  
February 2024
      LIBOR +
applicable margin		  
 		     MSRs        90,000     
 
88,072
        —    
April 2022
      Prime + .50%;
6% floor		  
 		     Unsecuritized
Tails		  
 		      50,000     
 
40,954
        37,442  
                     
 
 
     
 
 
     
 
 
  
Subtotal reverse lines of credit
 
            $ 1,738,719     
$
1,028,368
      $ 767,959  
                     
 
 
     
 
 
     
 
 
  
Commercial Lines:
                                            
February 2022 - November 2023
      LIBOR +
applicable margin		  
 		     First Lien
Mortgages		  
 		    $ 510,000     
$
149,787
      $ 128,134  
August 2022 - September 2022
      LIBOR +
applicable margin		  
 		    
 		 Encumbered
Agricultural
Loans		  
 
 		      225,000     
 
152,634
        52,300  
August 2022
      10%       Second Lien
Mortgages		  
 		      25,000     
 
21,701
        21,475  
N/A
      LIBOR +
applicable margin		  
 		     Mortgage Related
Assets		  
 		      1,509     
 
1,509
        6,411  
                     
 
 
     
 
 
     
 
 
  
Subtotal commercial lines of credit
 
            $ 761,509     
$
325,631
      $ 208,320  
                     
 
 
     
 
 
     
 
 
  
Total other financing lines of credit
 
            $ 6,312,334     
$
3,325,156
      $ 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 September 30, 2021.
(2)
See Note 31 - Subsequent Events for additional information on f
a
cility amendments.
Summary of maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios
As of September 30, 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
     
September 30, 2021
     
Maximum Allowable
Distribution
(1)
  
FAM
                           
Adjusted Tangible Net Worth
   
$
150,000
     
$
200,718
     
$
50,718
  
Liquidity
   
 
40,000
     
 
67,053
     
$
27,053
  
Leverage Ratio
   
 
15:1
 
   
 
12.6:1
 
   
 
32,538
  
Material Decline in Lender Adjusted Net Worth:
                           
Lender Adjusted Tangible Net Worth (Quarterly requirement)
   
$
143,538
     
$
200,719
     
$
57,181
  
Lender Adjusted Tangible Net Worth
(Two-Consecutive
Quarterly requirement)
   
 
235,832
     
 
200,719
     
$
(35,113
 )
FACo
                           
Adjusted Tangible Net Worth
   
$
85,000
     
$
101,942
     
$
16,942
  
Liquidity
   
 
20,000
     
 
37,294
     
$
17,294
  
Leverage Ratio
   
 
6:1
 
   
 
3.7:1
 
   
 
39,855
  
FAR
                           
Adjusted Tangible Net Worth
   
$
450,000
     
$
501,822
     
$
51,822
  
Liquidity
   
 
20,000
     
 
33,480
     
$
 
13,480
  
Leverage Ratio
   
 
6:1
 
   
 
2.9:1
 
   
$
 
242,109
  
Material Decline in Lender Adjusted Net Worth:
                           
Lender Adjusted Tangible Net Worth (Quarterly requirement)
   
$
336,035
     
$
476,133
     
$
140,098
  
Lender Adjusted Tangible Net Worth
(Two-Consecutive
Quarterly requirement)
   
 
235,832
     
 
476,133
     
$
 
240,301
  
 
(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, 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
   
$
 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)
    $ 210,428      $ 282,062      $ 71,634  
Lender Adjusted Tangible Net Worth
(Two-Consecutive
Quarterly requirement)
      93,763        282,062        188,299  
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      $ 472,458      $ 158,367  
Lender Adjusted Tangible Net Worth
(Two-Consecutive
Quarterly requirement)
      205,619        472,458        266,839  
 
(1)
 
The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary.