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 September 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. Additionally, as of September 30, 2026, the Company has one warehouse line of credit with a national bank to assist in funding interim loans held for investment (“Interim Warehouse Facility”). The Company has historically pledged the majority of interim loans held for investment against the Interim Warehouse Facility. The Company’s ability to originate and hold interim loans for investment depends upon market conditions and its ability to secure and maintain this type of short-term financing on acceptable terms. As of September 30, 2026, the Interim Warehouse Facility had $100.0 million of total facility capacity with an outstanding balance of $43.5 million. The interest rate on the Interim Warehouse Facility is based on an Adjusted Term Secured Overnight Financing Rate (“”) plus 145 to 175 basis points. The maturity date of the Interim Warehouse Facility is December 10, 2027. The interest rate for all the Company’s warehouse facilities is based on SOFR. The maximum amount and outstanding borrowings under Warehouse notes payable as of September 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 maturity date of Agency Warehouse Facility #1 was extended to August 25, 2027, and the interest rate was 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 was decreased from plus 130 basis points to plus 120 basis points. The maturity date of Agency Warehouse Facility #3 was extended to May 14, 2027, and the interest rate was decreased from plus 130 basis points to plus 120 basis points. The maturity date of Agency Warehouse Facility #4 was extended to June 22, 2027. The maturity date of Agency Warehouse Facility #5 was extended to September 9, 2027, and the interest rate was decreased from plus 145 basis points to plus 135 basis points. 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 $188.0 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 September 30, 2026, the balance of the Term Loan was $443.3 million, and the revolving credit facility did not have a balance. The Company also had $400.0 million aggregate principal amount and balance outstanding of senior unsecured notes due 2033 (“Senior Notes”) as of September 30, 2026. On October 26, 2026, the Company entered into Amendment No. 1 to the Term Loan (the “Amendment”) to, among other things, extend the maturity date of the revolving credit facility, increase the revolving credit commitments from $50 million to $150 million and the letter of credit commitments from $25 million to $75 million, and reduce the pricing of the revolving credit facility by 25 basis points. The following table shows the components of the Corporate notes payable as of September 30, 2026 and December 31, 2025:
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 September 30, 2026. |
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