Quarterly report pursuant to Section 13 or 15(d)

Revolving Credit Facilities

v3.23.1
Revolving Credit Facilities
3 Months Ended
Mar. 31, 2023
Revolving Credit Facilities [Abstract]  
Revolving Credit Facilities Revolving Credit Facilities
To finance MSR assets and related servicing advance obligations, the Company has entered into revolving credit facilities collateralized by the value of the MSR and/or servicing advances pledged. As of March 31, 2023 and December 31, 2022, the Company had outstanding short- and long-term borrowings under revolving credit facilities of $1.3 billion and $1.1 billion with a weighted average borrowing rate of 8.09% and 7.68% and weighted average remaining maturities of 1.5 and 1.1 years, respectively. As of March 31, 2023, none of the Company’s revolving credit facilities incorporated LIBOR as the referenced rate. See Note 2 - Basis of Presentation and Significant Accounting Policies for further discussion of the transition away from LIBOR.
At March 31, 2023 and December 31, 2022, borrowings under revolving credit facilities had the following remaining maturities:
(in thousands) March 31,
2023
December 31,
2022
Within 30 days $ —  $ — 
30 to 59 days —  — 
60 to 89 days —  — 
90 to 119 days 329,000  — 
120 to 364 days —  200,000 
One year and over 963,831  918,831 
Total $ 1,292,831  $ 1,118,831 

Although the transactions under revolving credit facilities represent committed borrowings from the time of funding until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets below a designated threshold would require the Company to provide additional collateral or pay down the facility. As of March 31, 2023 and December 31, 2022, MSR with a carrying value of $2.0 billion and $1.8 billion, respectively, was pledged as collateral for the Company’s future payment obligations under its MSR revolving credit facilities. As of March 31, 2023 and December 31, 2022, servicing advances with a carrying value of $58.0 million and $67.8 million, respectively, were pledged as collateral for the Company’s future payment obligations under its servicing advance revolving credit facility. The Company does not anticipate any defaults by its revolving credit facility counterparties, although there can be no assurance that any such default or defaults will not occur.