Annual report pursuant to Section 13 and 15(d)

Revolving Credit Facilities

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Revolving Credit Facilities
12 Months Ended
Dec. 31, 2017
Revolving Credit Facilities [Abstract]  
Revolving Credit Facilities
Revolving Credit Facilities
To finance MSR, the Company enters into revolving credit facilities collateralized by the value of the MSR pledged. As of December 31, 2017 and December 31, 2016, the Company had outstanding short-term borrowings under revolving credit facilities of $20.0 million and $70.0 million with a weighted average borrowing rate of 5.14% and 4.53% and weighted average remaining maturities of 351 and 306 days, respectively.
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 December 31, 2017 and December 31, 2016, MSR with a carrying value of $159.5 million and $180.9 million, respectively, was pledged as collateral for the Company’s future payment obligations under its revolving credit facilities. 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.