Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises

9 Months Ended

Sep. 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 September 30, 2020		Balance at December 31, 2019		Stated Spread to One-Month LIBOR	Rate Type
Warehouse facility due October 8, 2021(1)	$	1,500,000	$	—	$	993,200	$	34,125	115 bps - 140 bps	Variable
Warehouse facility due June 16, 2021(2)	450,000		—		273,088		16,759		115 bps - 140 bps	Variable
Warehouse facility due September 25, 2021	400,000		—		164,590		8,097		115 bps - 140 bps	Variable
Fannie Mae repurchase agreement, open maturity	—		400,000		79,455		150,667		105 bps	Variable
Total	$	2,350,000	$	400,000	$	1,510,333	$	209,648

(1)A warehouse line was temporarily increased by $600.0 million for the period August 28, 2020 to October 27, 2020. A warehouse line was temporarily increased by $500.0 million for the period September 8, 2020 to October 31, 2020.

(2)A warehouse line established a $125.0 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 September 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 September 30, 2020 and December 31, 2019 and for the three and nine months ended September 30, 2020 and September 30, 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.