Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises

9 Months Ended

Sep. 30, 2019

Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises

(21)	Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises

Newmark uses its warehouse facilities and repurchase agreements to fund mortgage loans originated under its various lending programs. Outstanding borrowings against these lines are collateralized by an assignment of the underlying mortgages and third-party purchase commitments and are recourse only to Berkeley Point Capital, LLC.

As of September 30, 2019, Newmark had the following lines available and borrowings outstanding (in thousands):

	Committed Lines		Uncommitted Lines		Balance at September 30, 2019		Stated Spread to One Month LIBOR	Rate Type
Warehouse facility due June 17, 2020	$	450,000	$	—	$	188,507	115 bps	Variable
Warehouse facility due June 17, 2020⁽¹⁾		—		200,000		—	110 bps	Variable
Warehouse facility due September 25, 2020		200,000		—		183,694	115 bps	Variable
Warehouse facility due October 9, 2020⁽²⁾		800,000		—		145,159	115 bps	Variable
Fannie Mae repurchase agreement, open maturity		—		400,000		163,500	105 bps	Variable
Total	$	1,450,000	$	600,000	$	680,860

(1)

Effective October 2, 2019, the warehouse line was increased to $300.0 million.

(2)

On September 5, 2019, the warehouse facility was renewed, the notional amount was increased to $400.0 million, and the maturity date was extended to October 9, 2020. As of September 30, 2019, the warehouse line had a temporary increase of $400.0 million which expired on October 28, 2019.

As of December 31, 2018, Newmark had the following lines available and borrowings outstanding (in thousands):

	Committed Lines		Uncommitted Lines		Balance at December 31, 2018		Stated Spread to One Month LIBOR	Rate Type
Warehouse facility due June 19, 2019	$	450,000	$	—	$	413,063	120 bps	Variable
Warehouse facility due September 25, 2019		200,000		—		113,452	120 bps	Variable
Warehouse facility due October 10, 2019⁽¹⁾		1,000,000		—		416,373	120 bps	Variable
Fannie Mae repurchase agreement, open maturity		—		325,000		29,499	115 bps	Variable
Total	$	1,650,000	$	325,000	$	972,387

(1)

The warehouse facility was temporarily increased by $700.0 million to $1.0 billion for the period of November 30, 2018 to January 29, 2019. On January 29, 2019, the temporary increase was decreased by $400 million to $300 million for the period January 29, 2019 to April 1, 2019.

Pursuant to the terms of the warehouse facilities, Newmark is required to meet several financial covenants. Newmark was in compliance with all covenants as of September 30, 2019 and December 31, 2018 and for the three and nine months ended September 30, 2019 and 2018 and the year ended December 31, 2018.

The borrowing rates on the warehouse facilities are based on short-term London Interbank Offered Rate (“LIBOR”) plus applicable margins. Due to the short-term maturity of these instruments, the carrying amounts approximate fair value.