WAREHOUSE AND CORPORATE NOTES PAYABLE |
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| WAREHOUSE AND CORPORATE NOTES PAYABLE | NOTE 7—WAREHOUSE AND CORPORATE NOTES PAYABLE Warehouse Facilities As of June 30, 2026, to provide financing to borrowers under the Agencies’ programs, the Company had committed and uncommitted warehouse lines of credit in the amount of $4.6 billion with certain national banks and a $1.5 billion uncommitted facility with Fannie Mae (collectively, the “Agency Warehouse Facilities”). In support of these Agency Warehouse Facilities, the Company has pledged substantially all of its loans held for sale under the Company’s approved programs. The Company’s ability to originate mortgage loans for sale depends upon its ability to secure and maintain these types of short-term financings on acceptable terms. The interest rate for all the Company’s warehouse facilities is based on an Adjusted Term Secured Overnight Financing Rate (“SOFR”). The maximum amount and outstanding borrowings under Warehouse notes payable as of June 30, 2026 follow:
During 2026, the following amendments to the Company’s Agency Warehouse Facilities were executed in the normal course of business to support the Company’s business. No other material modifications have been made to the Agency Warehouse Facilities during the year. The interest rate of Agency Warehouse Facility #1 decreased from plus 130 basis points to plus 120 basis points. The maturity date of Agency Warehouse Facility #2 was extended to March 1, 2027, and the interest rate decreased from plus 130 basis points to plus 120 basis points. During the third quarter of 2026, the maturity date of Agency Warehouse Facility #3 was extended to August 13, 2026. The maturity date of Agency Warehouse Facility #4 was extended to June 22, 2027. On May 29, 2026, the Company executed an agreement to establish Agency Warehouse Facility #6. The Company has a master repurchase agreement with a multinational bank for a $750.0 million uncommitted advance credit facility that is scheduled to mature on May 28, 2027. The facility provides the Company with the ability to fund Agency loans up to the uncommitted amount and has a sublimit of $188 million for certain loans that are bridge loans (“pre-Agency loans”). Advances for Agency loans are made at 100% of loan balances and bear interest at a rate of plus 130 basis points. Advances for Fannie Mae and Freddie Mac pre-Agency loans are made at 95% of loan balances for 180 days and 90% of loan balances thereafter. Advances for HUD and FHA pre-Agency loans are made at 90% of loan balances for 180 days and 85% of loan balances thereafter. All pre-Agency loans bear interest at plus 130 basis points for 180 days and plus 140 basis points thereafter. Corporate Notes Payable The Company has a senior secured credit agreement, which has been amended several times, that provides for a $450.0 million term loan (the “Term Loan”) and a revolving credit facility of $50.0 million. As of June 30, 2026, the balance of the Term Loan was $444.4 million, and the revolving credit facility did not have an outstanding balance. The Company also had $400.0 million aggregate principal amount and balance outstanding of senior unsecured notes due 2033 (“Senior Notes”) as of June 30, 2026. The warehouse facilities and corporate notes payable are subject to various financial covenants. The Company is in compliance with all of these financial covenants as of June 30, 2026. |
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