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Mortgage Loans Held for Sale and Warehouse Lines of Credit
 9 Months Ended
Sep. 30, 2025
Mortgage Loans Held For Sale And Warehouse Agreement Borrowings [Abstract]  
Mortgage Loans Held for Sale and Warehouse Lines of Credit
4. Mortgage Loans Held for Sale and Warehouse Lines of Credit
The Company has the following outstanding warehouse lines of credit:
(Amounts in thousands)MaturityFacility SizeSeptember 30, 2025December 31, 2024
Funding Facility 1 (1)
May 13, 2025$— $— $60,747 
Funding Facility 2 (2)
March 6, 2026150,000 92,016 74,472 
Funding Facility 3 (3)
June 30, 2026175,000 138,997 108,851 
Funding Facility 4 (4)
April 5, 2026250,000 118,758 — 
Total warehouse lines of credit$575,000 $349,771 $244,070 
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(1)Interest charged under the facility is at the 30-day term SOFR plus 2.125%. During the second quarter of 2025, Funding Facility 1 was terminated prior to maturity.
(2)Interest charged under the facility is at the 30-day term SOFR plus 2.10% - 2.50%. Cash collateral deposit of $3.8 million is maintained and included in restricted cash.
(3)Interest charged under the facility is at the 30-day term SOFR plus 1.75% - 3.75%. There is no cash collateral deposit maintained as of September 30, 2025.
(4)Interest charged under the facility is at the daily simple SOFR plus 1.75% - 2.50%. There is no cash collateral deposit maintained as of September 30, 2025.
The unpaid principal amounts of the Company’s LHFS are also pledged as collateral under the relevant warehouse funding facilities. The Company’s LHFS are summarized below by those pledged as collateral and those fully funded by the Company:
(Amounts in thousands)September 30, 2025December 31, 2024
Funding Facility 1$— $61,341 
Funding Facility 294,594 83,562 
Funding Facility 3151,996 123,081 
Funding Facility 4118,770 — 
Total LHFS pledged as collateral365,360 267,984 
Company-funded LHFS22,934 10,056 
Company-funded HELOC19,266 118,879 
Total LHFS407,560 396,919 
Fair value adjustment6,438 2,322 
Total LHFS at fair value$413,998 $399,241 
Average days loans held for sale, other than Company-funded LHFS and Company-funded HELOC, for the three and nine months ended September 30, 2025 were approximately 26 days and 29 days, respectively. Average days loans held for sale, other than Company-funded LHFS and Company-funded HELOC, for the three and nine months ended September 30, 2024 were approximately 24 days and 28 days, respectively. This is defined as the average days between funding and sale for loans funded during each period. As of September 30, 2025 and December 31, 2024, the unpaid principal balance of loans that were either 90 days past due or non-performing was $6.2 million and $1.4 million, respectively.
For the nine months ended September 30, 2025 and 2024, the weighted average interest rate for the warehouse lines of credit was 6.08% and 6.90%, respectively. The warehouse lines of credit contain certain restrictive covenants that require the Company to maintain certain minimum net worth, liquid assets, liquidity ratios, and leverage ratios. In addition, these warehouse lines also require the Company to maintain compensating cash balances which aggregated to $3.8 million and $18.8 million as of September 30, 2025 and December 31, 2024, respectively, and are included in restricted cash on the accompanying condensed consolidated balance sheets. The Company was in compliance with all financial covenants under the warehouse lines as of September 30, 2025.