Revolving Credit Facilities
|9 Months Ended|
Sep. 30, 2020
|Revolving Credit Facilities [Abstract]|
|Revolving Credit Facilities||Revolving Credit FacilitiesTo 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 September 30, 2020 and December 31, 2019, the Company had outstanding short- and long-term borrowings under revolving credit facilities of $274.8 million and $300.0 million with a weighted average borrowing rate of 2.94% and 4.26% and weighted average remaining maturities of 1.3 and 1.2 years, respectively.
At September 30, 2020 and December 31, 2019, borrowings under revolving credit facilities had the following remaining maturities:
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 September 30, 2020 and December 31, 2019, MSR with a carrying value of $485.9 million and $449.5 million, respectively, was pledged as collateral for the Company’s future payment obligations under its MSR revolving credit facilities. As of September 30, 2020, servicing advances with a carrying value of $11.1 million were pledged as collateral for the Company’s future payment obligations under its servicing advance revolving credit facility. The Company did not have any outstanding borrowings under the servicing advance revolving credit facility as of September 30, 2020. 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.