Warehouse Facilities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warehouse Facilities | Warehouse Facilities To finance origination activities, the Company has entered into a warehouse facility collateralized by the value of the mortgage loans pledged for a period of up to 90 days or until they are sold to the GSEs or other third-party investors in the secondary market, typically within 60 days of origination. As of March 31, 2025 and December 31, 2024, the Company had outstanding short-term borrowings under its warehouse facility of $8.0 million and $2.0 million with a weighted average borrowing rate of 6.36% and 6.64% and weighted average remaining maturities of 76 and 87 days, respectively.
At March 31, 2025 and December 31, 2024, borrowings under the Company’s warehouse facility had the following remaining maturities:
Although the transactions under warehouse facilities represent committed borrowings from the time of funding until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets below a designated threshold would require the Company to provide additional collateral or pay down the facility. As of March 31, 2025 and December 31, 2024, mortgage loans held-for-sale with a carrying value of $8.1 million and $2.1 million, respectively, were pledged as collateral for the Company’s future payment obligations under its warehouse facility. Additionally, as of both March 31, 2025 and December 31, 2024, cash of $0.4 million was held in restricted accounts as collateral for the future payment obligations of outstanding warehouse facility balances. The Company does not anticipate any defaults by its warehouse facility counterparties, although there can be no assurance that any such default or defaults will not occur.
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- Definition Debt Disclosure - Warehouse Facilities No definition available.
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- References No definition available.
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