Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises

3 Months Ended

Mar. 31, 2020

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.

Newmark had the following lines available and borrowings outstanding (in thousands):



	Committed Lines		Uncommitted Lines		Balance at March 31, 2020		Balance at December 31, 2019		Stated Spread to One-Month LIBOR	Rate Type
Warehouse facility due June 17, 2020⁽¹⁾	$	450,000	$	—	$	182,159	$	16,759	115 bps	Variable
Warehouse facility due June 17, 2020	—		300,000		—		—		110 bps	Variable
Warehouse facility due September 25, 2020	200,000		—		119,981		8,097		115 bps	Variable
Warehouse facility due October 9, 2020⁽²⁾	400,000		—		389,260		34,125		115 bps	Variable
Fannie Mae repurchase agreement, open maturity	—		400,000		11,921		150,667		105 bps	Variable
Total	$	1,050,000	$	700,000	$	703,321	$	209,648


⁽¹⁾	This warehouse line was temporarily increased by $350.0 million to $800.0 million for the period January 13, 2020 to March 30, 2020.


⁽²⁾	This warehouse line was temporarily increased by $100.0 million to $500.0 million for the period January 29, 2020 to March 13, 2020.

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 March 31, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019.

The borrowing rates on the warehouse facilities are based on short-term LIBOR plus applicable margins. Due to the short-term maturity of these instruments, the carrying amounts approximate fair value.