Warehouse Lines of Credit	12 Months Ended
Dec. 31, 2022
Warehouse Lines of Credit
Warehouse Lines of Credit	Note 8. Warehouse Lines of Credit Encompass Lending Group (“Encompass”), a wholly owned subsidiary of the Company, utilizes line of credit facilities as a means of temporarily financing mortgage loans pending their sale. The underlying warehouse lines of credit agreements, as described below, contain financial and other debt covenants. Encompass maintains a master loan warehouse agreement with a bank whereby Encompass borrows funds to finance the origination or purchase of eligible loans. Interest on funds borrowed is equal to the greater of the 30-Day Secured Overnight Financing Rate (SOFR) rate plus 2.625% or 3.50%. The agreement expires in July 2023. The maximum funding available under these loans at December 31, 2022 and December 31, 2021 was $15.0 million. At December 31, 2022 and 2021, the outstanding balance on this warehouse line was approximately $1.7 million and $4.3 million, respectively. As of December 31, 2022, Encompass was in compliance with the debt covenants under this facility. Encompass maintains a mortgage participation purchase agreement with a bank whereby Encompass borrows funds to finance the origination or purchase of eligible loans. Interest on funds borrowed is equal to the greater of the London Inter-Bank Offered Rate (Libor) Rate plus 2.00% or 3.5%. The agreement expires in April 2023.The maximum funding available under these loans at December 31, 2022 and December 31, 2021 was $25.0 million. At December 31, 2022 and 2021, the outstanding balance on this warehouse line was approximately $0.8 million and $3.1 million, respectively. As of December 31, 2022, Encompass was not in compliance with certain of these debt covenants related to earnings. Pursuant to an amendment signed on March 9, 2023, Encompass received a waiver on the non-compliant covenants. Encompass maintains a warehousing credit and security agreement with a bank whereby Encompass borrows funds to finance the origination of eligible mortgage loans. Interest on funds borrowed is equal to the greater of the daily adjusting Bloomberg Short-Term Bank Yield (BSBY) rate plus 2.00% or 3.5% per annum. The agreement expires in September 2023. The daily adjusting BSBY rate plus 2.00% as of December 31, 2022 was 6.36% and the daily adjusting LIBOR plus 2.00% as of December 31, 2021 was 2.09%. The maximum funding available under these loans at December 31, 2022 and December 31, 2021 was $15.0 million. At December 31, 2022 and December 31, 2021, the outstanding balance on this warehouse line was approximately $1.0 million and $2.2 million, respectively. As of December 31, 2022, Encompass was not in compliance with certain of these debt covenants related to earnings. Pursuant to an amendment signed on March 9, 2023, Encompass has received a waiver on the non-compliant covenants.

Warehouse Lines of Credit

12 Months Ended

Dec. 31, 2022

Note 8. Warehouse Lines of Credit

Encompass Lending Group (“Encompass”), a wholly owned subsidiary of the Company, utilizes line of credit facilities as a means of temporarily financing mortgage loans pending their sale. The underlying warehouse lines of credit agreements, as described below, contain financial and other debt covenants.

Encompass maintains a master loan warehouse agreement with a bank whereby Encompass borrows funds to finance the origination or purchase of eligible loans. Interest on funds borrowed is equal to the greater of the 30-Day Secured Overnight Financing Rate (SOFR) rate plus 2.625% or 3.50%. The agreement expires in July 2023. The maximum funding available under these loans at December 31, 2022 and December 31, 2021 was $15.0 million. At December 31, 2022 and 2021, the outstanding balance on this warehouse line was approximately $1.7 million and $4.3 million, respectively. As of December 31, 2022, Encompass was in compliance with the debt covenants under this facility.

Encompass maintains a mortgage participation purchase agreement with a bank whereby Encompass borrows funds to finance the origination or purchase of eligible loans. Interest on funds borrowed is equal to the greater of the London Inter-Bank Offered Rate (Libor) Rate plus 2.00% or 3.5%. The agreement expires in April 2023.The maximum funding available under these loans at December 31, 2022 and December 31, 2021 was $25.0 million. At December 31, 2022 and 2021, the outstanding balance on this warehouse line was approximately $0.8 million and $3.1 million, respectively. As of December 31, 2022, Encompass was not in compliance with certain of these debt covenants related to earnings. Pursuant to an amendment signed on March 9, 2023, Encompass received a waiver on the non-compliant covenants.

Encompass maintains a warehousing credit and security agreement with a bank whereby Encompass borrows funds to finance the origination of eligible mortgage loans. Interest on funds borrowed is equal to the greater of the daily adjusting Bloomberg Short-Term Bank Yield (BSBY) rate plus 2.00% or 3.5% per annum. The agreement expires in September 2023. The daily adjusting BSBY rate plus 2.00% as of December 31, 2022 was 6.36% and the daily adjusting LIBOR plus 2.00% as of December 31, 2021 was 2.09%. The maximum funding available under these loans at December 31, 2022 and December 31, 2021 was $15.0 million. At December 31, 2022 and December 31, 2021, the outstanding balance on this warehouse line was approximately $1.0 million and $2.2 million, respectively. As of December 31, 2022, Encompass was not in compliance with certain of these debt covenants related to earnings. Pursuant to an amendment signed on March 9, 2023, Encompass has received a waiver on the non-compliant covenants.