Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises

9 Months Ended

Sep. 30, 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 September 30, 2024		Balance at December 31, 2023		Stated Spread to One-Month SOFR	Rate Type
Warehouse facility due May 6, 2025 (1)(2)	$	450,000	$	300,000	$	151,072	$	—	130 bps	Variable

Warehouse facility due September 25, 2025	200,000		200,000		287,130		94,873		130 bps	Variable

Warehouse facility due October 5, 2024 (3)	800,000		600,000		528,357		403,758		130 bps	Variable

Fannie Mae repurchase agreement, open maturity	—		400,000		19,242		—		115 bps	Variable
Total	$	1,450,000	$	1,500,000	$	985,801	$	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 bore an interest rate of one-month SOFR plus 180 bps. There were no outstanding draws under this sublimit line of credit as of 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.

(3)On October 5, 2024, the warehouse line was renewed, extending the maturity date to October 4, 2025.

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 both September 30, 2024 and December 31, 2023.

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.