Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises

6 Months Ended

Jun. 30, 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 June 30, 2020		Balance at December 31, 2019		Stated Spread to One-Month LIBOR	Rate Type
Warehouse facility due October 9, 2020⁽¹⁾	$	1,000,000	$	—	$	850,685	$	34,125	115 bps	Variable
Warehouse facility due June 16, 2021⁽²⁾	450,000		—		94,249		16,759		115 bps - 150 bps	Variable
Warehouse facility due September 25, 2020	200,000		—		48,587		8,097		115 bps	Variable
Fannie Mae repurchase agreement, open maturity	—		400,000		70,575		150,667		105 bps	Variable
Total	$	1,650,000	$	400,000	$	1,064,096	$	209,648


⁽¹⁾	A warehouse line was temporarily increased by $200 million for the period June 1, 2020 to July 16, 2020. A warehouse line was temporarily increased by $400 million for the period June 29, 2020 to August 29, 2020.


⁽²⁾	A warehouse line established a $125 million sublimit line of credit to fund potential principal and interest servicing advances on the Company's Fannie Mae portfolio during the forbearance period related to the CARES Act. Advances will have an interest rate of 1-month LIBOR plus 200 bps. There were no outstanding draws outstanding under this sublimit at June 30, 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 June 30, 2020 and December 31, 2019 and for the three and six months ended June 30, 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.