Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises

3 Months Ended

Mar. 31, 2024

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 our wholly owned subsidiary, Berkeley Point Capital, LLC.

Newmark had the following lines available and borrowings outstanding (in thousands except the stated spread to one-month SOFR):


	Committed Lines		Uncommitted Lines		Balance at March 31, 2024		Balance at December 31, 2023		Stated Spread to One-Month SOFR	Rate Type
Warehouse facility due June 12, 2024 (1)(2)	$	450,000	$	—	$	15,733	$	—	130 bps	Variable
Warehouse facility due June 12, 2024 (1)(2)	—		300,000		—		—		130 bps	Variable
Warehouse facility due September 25, 2024	250,000		—		150,809		94,873		130 bps	Variable
Warehouse facility due September 25, 2024	—		150,000		—		—		130 bps	Variable
Warehouse facility due October 5, 2024	800,000		—		326,886		403,758		130 bps	Variable
Warehouse facility due October 5, 2024	—		600,000		—		—		130 bps	Variable
Fannie Mae repurchase agreement, open maturity	—		400,000		—		—		115 bps	Variable
Total	$	1,500,000	$	1,450,000	$	493,428	$	498,631

(1)The 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 one-month SOFR plus 180 bps. There were no outstanding draws under this sublimit as of March 31, 2024 and December 31, 2023.

(2)On May 7, 2024, the warehouse line was renewed, extending the maturity date to May 6, 2025 and removing the $125.0 million sublimit line of credit.

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, 2024 and December 31, 2023, respectively.

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