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After an investor has been selected, the mortgage banker draws on the warehouse line of credit to fund a mortgage and sends the loan documentation to the warehouse credit-providing institution to act as a collateral for the line of credit. The warehouse lender, at this stage, perfects a security interest in the mortgage note to serve as collateral.
The facility acts much like a corporate credit card, except that borrowers are charged an annual commitment fee on unused amounts, which drives up the overall cost of borrowing (the facility fee). In the U.S., many revolvers to speculative-grade issuers are asset-based and thus tied to borrowing-base lending formulas that limit borrowers to a ...
Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit. Credit cards are an example of revolving credit used by consumers. Corporate revolving credit facilities are typically used to provide liquidity for a company's day-to-day operations.
As of December 31, we have over $2 billion of liquidity, including $1.1 billion of availability on our revolving credit facility, the previously mentioned outstanding forward equity, and cash on hand.
We recasted our $3.5 billion revolving credit facility with maturity extended to January of 2030 and no change in pricing or terms and completed over $6 billion of secured loan refinancings and ...
The term of a HELOC is split in two distinct periods. During the “draw period”, the customer can use their HELOC like a revolving facility. Draw periods typically last 10 years. [4] During this time, the borrower can drawdown funds, repay and redraw again as many times as they wish, only paying interest on their outstanding balance.
Total liquidity at the end of the year stood at $1.8 billion, including cash and revolving credit facility capacity. Our leverage ratio, defined as net debt to adjusted EBITDA, was 4.9 times at ...
Borrowing base is an accounting metric used by financial institutions to estimate the available collateral on a borrower's assets in order to evaluate the size of the credit that may be extended. [1]