Warehouse Lines of Credit |
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| Warehouse Lines of Credit | 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.
(1) Bank A's interest on funds borrowed is equal to the greater of 5.00%, or the 30-Day Secured Overnight Financing Rate (SOFR) plus 2.438%. The agreement ends in July 2025. Encompass was in compliance with debt covenants under this facility as of December 31, 2024.
(2) Bank B's interest on funds borrowed is equal to the note rate. The agreement ends in September 2025. As of December 31, 2024, Encompass was not in compliance with certain of these debt covenants under this facility related to earnings. Pursuant to an agreement signed on February 28, 2025, Encompass has received a waiver for the non-compliant covenant.
(3) Bank C's interest on funds borrowed is equal to the greater of 5.75% or the 1-month CME Term SOFR plus 2.00%. The agreement ended in October 2024. Bank C was replaced with Bank B in November 2024.
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