NOTE 7—WAREHOUSE NOTES PAYABLE

At March 31, 2018, to provide financing to borrowers, the Company has arranged for warehouse lines of credit. In support of the Agencies’ programs, the Company has committed and uncommitted warehouse lines of credit in the amount of $3.2 billion with certain national banks and a $1.5 billion uncommitted facility with Fannie Mae (collectively, the “Agency Warehouse Facilities”). The Company has pledged substantially all of its loans held for sale against the Agency Warehouse Facilities. The Company has arranged for warehouse lines of credit in the amount of $0.3 billion with certain national banks to assist in funding loans held for investment under the Interim Program (“Interim Warehouse Facilities”). The Company has pledged substantially all of its loans held for investment against these Interim Warehouse Facilities. The maximum amount and outstanding borrowings under the warehouse notes payable at March 31, 2018 are shown in the table below:


	March 31, 2018
(dollars in thousands)	Committed		Uncommitted		Temporary		Total Facility		Outstanding
Facility1	Amount		Amount		Increase		Capacity		Balance		Interest rate
Agency Warehouse Facility #1	$	425,000	$	300,000	$	—	$	725,000	$	120,903	30-day LIBOR plus 1.30%
Agency Warehouse Facility #2		500,000		300,000		—		800,000		177,577	30-day LIBOR plus 1.30%
Agency Warehouse Facility #3		480,000		—		—		480,000		102,541	30-day LIBOR plus 1.25%
Agency Warehouse Facility #4		350,000		—		—		350,000		228,680	30-day LIBOR plus 1.30%
Agency Warehouse Facility #5		30,000		—		—		30,000		19,017	30-day LIBOR plus 1.80%
Agency Warehouse Facility #6		250,000		250,000		—		500,000		—	30-day LIBOR plus 1.35%
Agency Warehouse Facility #7		250,000		100,000		—		350,000		63,547	30-day LIBOR plus 1.30%
Fannie Mae repurchase agreement, uncommitted line and open maturity		—		1,500,000		—		1,500,000		56,984	30-day LIBOR plus 1.15%
Total Agency Warehouse Facilities	$	2,285,000	$	2,450,000	$	—	$	4,735,000	$	769,249

Interim Warehouse Facility #1	$	85,000	$	—	$	—	$	85,000	$	10,290	30-day LIBOR plus 1.90%
Interim Warehouse Facility #2		100,000		—		—		100,000		24,662	30-day LIBOR plus 2.00%
Interim Warehouse Facility #3		75,000		—		—		75,000		—	30-day LIBOR plus 2.00% to 2.50%
Total Interim Warehouse Facilities	$	260,000	$	—	$	—	$	260,000	$	34,952
Debt issuance costs		—		—		—		—		(1,705)
Total warehouse facilities	$	2,545,000	$	2,450,000	$	—	$	4,995,000	$	802,496

1 Agency Warehouse Facilities, including the Fannie Mae repurchase agreement are used to fund loans held for sale, while Interim Warehouse Facilities are used to partially fund loans held for investment.

During the second quarter of 2018, the Company executed the ninth amendment to the warehouse agreement related to Agency Warehouse Facility #3. The amendment extended the maturity date to April 30, 2019, increased the permanent committed borrowing capacity to $500.0 million, and established additional uncommitted borrowing capacity of $265.0 million. The uncommitted borrowing capacity expires on January 30, 2019. No other material modifications have been made to the agreement during 2018.

During the first quarter of 2018, the Company executed the first amendment to the warehouse credit and security agreement related to Agency Warehouse Facility #5 that extended the maturity date to July 12, 2019. The amendment also provides the Company the unilateral option to extend the agreement for one additional year. No other material modifications have been made to the agreement during 2018.

During the first quarter of 2018, the Company executed a warehousing and security agreement to establish Agency Warehouse Facility #7. The warehouse facility has a committed $250.0 million maximum borrowing amount and is scheduled to mature on February 2, 2019. The Company can fund Fannie Mae, Freddie Mac, HUD, and FHA loans under the facility. Advances are made at 100% of the loan balance, and the borrowings under the warehouse agreement bear interest at a rate of LIBOR plus 130 basis points. The agreement provides $100.0 million of uncommitted borrowing capacity that bears interest at the same rate as the committed facility. No material modifications have been made to the agreement during 2018.

During the second quarter of 2018, the Company executed the eighth amendment to the credit and security agreement related to Interim Warehouse Facility #1 that extended the maturity date to April 30, 2019. No other material modifications have been made to the agreement during 2018.

During the second quarter of 2018, the Company exercised its option to extend the maturity date of Interim Warehouse Facility #3 to May 19, 2019. No other material modifications have been made to the agreement during 2018.

The warehouse notes payable are subject to various financial covenants, all of which the Company was in compliance with as of the current period end.