Quarterly report pursuant to Section 13 or 15(d)

Warehouse Lines of Credit (Tables)

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Warehouse Lines of Credit (Tables)
 6 Months Ended
Jun. 30, 2024
Warehouse Lines Of Credit  
Summary of Credit Facilities The below table has dollars in millions.
June 30, 2024 December 31, 2023
Lender Borrowing Capacity Outstanding Borrowings Weighted -Average Interest Rate on Outstanding Borrowings Borrowing Capacity Outstanding Borrowings Weighted -Average Interest Rate on Outstanding Borrowings
Bank A1
$ 10.0  $ 4.1  7.57  % $ 7.5  $ 3.5  7.57  %
Bank B2
$ 10.0  $ 6.0  7.34  % $ 10.0  $ 4.8  7.35  %
(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 September 2024. Encompass was in compliance with debt covenants under this facility as of June 30, 2024.

(2) Bank B'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 ends on August 31, 2024. Encompass was not in compliance with certain of these debt covenants under this facility as of June 30, 2024 related to earnings. Pursuant to an agreement signed on September 7, 2023, Encompass has requested a waiver for the non-compliant covenant and expects to receive the waiver from the bank. If the Company is unable to obtain the covenant waiver, the bank would have the right to terminate the credit facility. Bank B’s warehouse line is collateralized by the mortgage loans held for sale.
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