Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises

12 Months Ended

Dec. 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 December 31, 2020		Balance at December 31, 2019		Stated Spread to One-Month LIBOR(3)	Rate Type
Warehouse facility due October 8, 2021(2)	$	900,000	$	—	$	358,247	$	34,125	115 bps - 140 bps	Variable
Warehouse facility due June 16, 2021(1)	450,000		—		292,040		16,759		115 bps - 140 bps	Variable
Warehouse facility due September 25, 2021	400,000		—		146,380		8,097		115 bps - 140 bps	Variable
Fannie Mae repurchase agreement, open maturity	—		400,000		264,535		150,667		105 bps - 115 bps	Variable
Total	$	1,750,000	$	400,000	$	1,061,202	$	209,648

(1)The warehouse line established a $125.0 million sublimit line of credit to find 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 December 31, 2020.

(2)The warehouse line was temporarily increased by $300.0 million to $900.0 million for the period December 1, 2020 to February 1, 2021.

(3)The spread for the Fannie Mae repurchase line is to SOFR. The warehouse lines are to LIBOR.

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 December 31, 2020 and 2019, respectively.

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.