Warehouse Borrowings

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Warehouse Borrowings

Warehouse Borrowings

The Company's subsidiaries entered into master repurchase agreements with lenders providing warehouse facilities. The warehouse facilities are primarily used to fund the origination of mortgage loans and reverse loans, as well as the repurchase of certain HECMs from Ginnie Mae securitization pools. The facilities had an aggregate funding capacity of $2.2 billion at December 31, 2014 and are secured by certain mortgage loans and reverse loans. The interest rates on the facilities are primarily based on LIBOR plus between 2.10% and 3.50% (weighted average stated interest rate of2.59% at December 31, 2014), in some cases are subject to a LIBOR floor or other minimum rates, and have various expiration dates through September 2015. The facilities are secured by $1.2 billion in unpaid principal balance of residential loans at December 31, 2014.

All of the Company’s subsidiaries' master repurchase agreements contain customary events of default and covenants, the most significant of which are financial covenants. Financial covenants most sensitive to the Company’s operating results and financial position are minimum tangible net worth requirements, indebtedness to tangible net worth ratio requirements, and minimum liquidity and profitability requirements.

For the quarter ended December 31, 2014, two of Green Tree Servicing’s master repurchase agreements were amended to allow for a net loss related to their respective minimum profitability covenants. Without these amendments, Green Tree Servicing would not have been in compliance with these covenants for the quarter ended December 31, 2014.

As a result of Green Tree Servicing obtaining these amendments, the Company's subsidiaries were in compliance with all financial covenants at December 31, 2014.