Secured Borrowings

12 Months Ended

Dec. 31, 2012

NOTE 15. Secured Borrowings

Pursuant to certain master repurchase agreements, ClearPoint was extended secured mortgage warehouse lines of credit in order to fund mortgage originations. These lines of credit carry floating rates of interest and are collateralized by ClearPoint's mortgage loans.

			December 31, 2012					December 31, 2011

(In thousands of dollars)						Outstanding Balance		Facility Limit			Outstanding Balance
Description	Expiration Date		Facility Limit			Outstanding Balance		Facility Limit			Outstanding Balance
Credit Facility No. 1		March 10, 2012	$	—		$	—	$	75,000		$	68,756
Credit Facility No. 2		See below		45,000			32,510		75,000			49,704
Credit Facility No. 3		See below		45,000			32,398		100,000			92,802

			$	90,000	(1)	$	64,908	$	250,000	(1)	$	211,262
Accelerated Purchase Facility		March 10, 2012		—			—		50,000			2,349

Total			$	90,000		$	64,908	$	300,000		$	213,611

(1): Committed capacity under the facilities was $0 million and $100 million as of December 31, 2012 and December 31, 2011, respectively.

On February 14, 2013, the Company entered into the Homeward Transaction, an agreement to sell substantially all of ClearPoint's assets to Homeward. This transaction closed on February 22, 2013. Refer to Note 29 herein for additional information. In connection with the Homeward Transaction, the Company entered into Consent and Wind-down Agreements in favor of the lenders to Credit Facilities No. 2 and No. 3, pursuant to which any funded loan that has not been purchased by the thirty-first day following the closing date of the Homeward Transaction shall become immediately due and payable under the respective credit facilities. As of March 15, 2013, ClearPoint had no remaining exposure to these credit facilities. In addition, the separate limited guaranties entered into by the Parent on February 29, 2012 and amended as of March 15, 2012, with the lenders to Credit Facilities No. 2 and No. 3 ("Curtailment Guaranties") have terminated. Refer to Note 19 for additional information with respect to the Curtailment Guaranties.

In connection with the Homeward Transaction, ClearPoint has agreed to provide transition services which includes loan origination services in Massachusetts and Virginia, currently through the earlier of March 31, 2013 or such date as Homeward receives the applicable licenses required to originate loans in these states. ClearPoint has arranged for a temporary credit facility in order to finance this origination activity. Capacity under this credit facility is $10 million and the facility can be terminated with five days written notice, or otherwise expires on September 30, 2013. Homeward will reimburse ClearPoint for the costs of providing the loan origination services and has provided a payment and performance guaranty of ClearPoint's obligations to the lender of this facility.

The advances under Credit Facility No. 1 and the Accelerated Purchase Facility were paid in full as of April 24, 2012, and pursuant to an amendment to the master repurchase agreement, those warehouse covenants are no longer in force, and ClearPoint has no further continuing reporting or notice obligations to this lender.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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