Quarterly report pursuant to Section 13 or 15(d)

Warehouse Lines of Credit

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Warehouse Lines of Credit
6 Months Ended
Jun. 30, 2021
Warehouse Lines of Credit  
Warehouse Lines of Credit

Note 8. Warehouse Lines of Credit

As a means of financing mortgage loans held for sale, the Company utilizes line of credit agreements for the purpose of temporarily warehousing mortgage loans pending the sale of the loans.

The Company maintains a warehousing credit and security agreement with a bank whereby the Company borrows funds to finance the origination of eligible mortgage loans. The Company pays interest equal to the greater of Prime Rate less 0.75% or 3.85% per annum. The Prime Rate as of June 30, 2021 was 3.25%. The maximum funding limit of these loans was $15.0 million at June 30, 2021. At June 30, 2021, there was no outstanding balance on this warehouse line. The agreement expires October 2021.

The Company maintains a master loan warehouse agreement with a bank whereby the Company borrows funds to finance the origination or purchase of eligible loans. The Company pays interest equal to the greater of the mortgage interest rate of the underlying loan or 3.5%. The maximum funding of these loans was $10.0 million at June 30, 2021. At June 30, 2021, the outstanding balance on this warehouse line was $2,945,633. The credit agreement requires the Company to maintain at least $500,000 in liquid assets. The agreement expires in January 2022.

The Company maintains a mortgage participation purchase agreement with a bank whereby the Company borrows funds to finance the origination or purchase of eligible loans. The Company pays interest equal to the greater of the mortgage interest rate of the underlying loan or 3.5%. The maximum funding of these loans was $25.0 million at June 30, 2021. At June 30, 2021, the outstanding balance on this warehouse line was $6,415,795. The credit agreement requires the Company to maintain at least $1,000,000 in liquid assets. The agreement expires in April 2023.