7. Debt and Borrowing Arrangements

The following table summarizes the components of Debt:



	June 30, 2016						December 31, 2015
	Balance		Interest Rate⁽¹⁾		Available Capacity⁽²⁾		Balance
	(In millions)
Committed warehouse facilities	$	764	2.1	%	$	486	$	632
Uncommitted warehouse facilities	3		3.5	%	2,797		—
Servicing advance facility	98		2.5	%	57		111

Term notes due in 2019⁽³⁾	272		7.375	%	n/a		271
Term notes due in 2021⁽³⁾	334		6.375	%	n/a		334
Unsecured debt	606						605
Total	$	1,471					$	1,348

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⁽¹⁾	Interest rate shown represents the stated interest rate of outstanding borrowings, which may differ from the effective rate due to the amortization of premiums, discounts and issuance costs. Warehouse facilities and the servicing advance facility are variable-rate. Rate shown for warehouse facilities represents the weighted-average rate of current outstanding borrowings.


⁽²⁾	Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions and covenants of the respective agreements, including asset-eligibility requirements.


⁽³⁾	Deferred issuance costs were reclassified from the prior year presentation in Other assets to a reduction in Unsecured debt.

Assets held as collateral that are not available to pay the Company’s general obligations as of June 30, 2016 consisted of:



	Warehouse Facilities		Servicing Advance Facility
	(In millions)
Restricted cash	$	7	$	14
Servicing advances	—		152
Mortgage loans held for sale (unpaid principal balance)	795		—
Total	$	802	$	166

The following table provides the contractual debt maturities as of June 30, 2016:



	Warehouse Facilities		Servicing Advance Facility⁽¹⁾		Unsecured Debt		Total
	(In millions)
Within one year	$	767	$	98	$	—	$	865
Between one and two years	—		—		—		—
Between two and three years	—		—		—		—
Between three and four years	—		—		275		275
Between four and five years	—		—		—		—
Thereafter	—		—		340		340
	$	767	$	98	$	615	$	1,480

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⁽¹⁾	Maturities of the servicing advance facility represent estimated payments based on the expected cash inflows of the receivables.

See Note 11, 'Fair Value Measurements' for the measurement of the fair value of Debt.

Mortgage Warehouse Facilities

On March 29, 2016, the Company entered into a new committed mortgage repurchase facility of $100 million and an uncommitted mortgage repurchase facility of $100 million with Barclays Bank PLC. The expiration date of the committed facility is March 28, 2017.

On March 31, 2016, the committed mortgage repurchase facilities with Wells Fargo Bank were extended to April 2, 2017. On June 22, 2016, the facilities were returned to a $450 million capacity, after having been downsized in the March amendment.

On June 13, 2016, the committed mortgage repurchase facilities with Fannie Mae were reduced by $200 million to $300 million at the Company's request. The total combined committed and uncommitted mortgage repurchase facilities with Fannie Mae remains unchanged at $3 billion.

On June 17, 2016, the $250 million committed and $325 million uncommitted mortgage repurchase facilities with Credit Suisse expired and were not renewed.

Servicing Advance Facility

On June 15, 2016, PHH Service Advance Receivables Trust 2013-1 (PSART”), an indirect, wholly-owned subsidiary of the Company, extended the revolving period of the note purchase agreement with Wells Fargo Bank for the Series 2015-1 variable funding notes with an aggregate maximum principal amount of $155 million, by one year through June 15, 2017 and also extended the final maturity of the notes by one year to June 15, 2018. The notes bear interest, payable monthly, based on LIBOR plus an agreed-upon margin.

Debt Covenants

During 2016, profitability conditions precedent to borrowing in certain of the Company's mortgage repurchase facility agreements have been modified to exclude legal and regulatory provisions, while liquidity covenants have been enhanced to require that the Company maintain $150 million of cash and cash equivalents in excess of its liability for legal and regulatory matters. In addition, the mortgage repurchase facilities were amended to reduce the minimum tangible net worth covenants from $1 billion to $750 million and to introduce a covenant requiring the Company to maintain a ratio of unsecured indebtedness to tangible net worth of not more than 1.25 to 1.00. There were no other significant amendments to the terms of the debt covenants during the six months ended June 30, 2016.

As of June 30, 2016, the Company was in compliance with all financial covenants related to its debt arrangements.