Warehouse Receivables & Warehouse Lines of Credit

6 Months Ended

Jun. 30, 2020

Warehouse Receivables And Warehouse Lines Of Credit [Abstract]

Warehouse Receivables & Warehouse Lines of Credit

4.	Warehouse Receivables & Warehouse Lines of Credit

Our wholly-owned subsidiary CBRE Capital Markets, Inc. (CBRE Capital Markets) is a Federal Home Loan Mortgage Corporation (Freddie Mac) approved Multifamily Program Plus Seller/Servicer and an approved Federal National Mortgage Association (Fannie Mae) Aggregation and Negotiated Transaction Seller/Servicer. In addition, CBRE Capital Markets’ wholly-owned subsidiary CBRE Multifamily Capital, Inc. (CBRE MCI) is an approved Fannie Mae Delegated Underwriting and Servicing (DUS) Seller/Servicer and CBRE Capital Markets’ wholly-owned subsidiary CBRE HMF, Inc. (CBRE HMF) is a U.S. Department of Housing and Urban Development (HUD) approved Non-Supervised Federal Housing Authority (FHA) Title II Mortgagee, an approved Multifamily Accelerated Processing (MAP) lender and an approved Government National Mortgage Association (Ginnie Mae) issuer of mortgage-backed securities (MBS). Under these arrangements, before loans are originated through proceeds from warehouse lines of credit, we obtain either a contractual loan purchase commitment from either Freddie Mac or Fannie Mae or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS that will be secured by the loans. The warehouse lines of credit are generally repaid within a one-month period when Freddie Mac or Fannie Mae buys the loans or upon settlement of the Fannie Mae or Ginnie Mae MBS, while we retain the servicing rights. Loans are funded at the prevailing market rates. We elect the fair value option for all warehouse receivables. At June 30, 2020 and December 31, 2019, all of the warehouse receivables included in the accompanying consolidated balance sheets were either under commitment to be purchased by Freddie Mac or had confirmed forward trade commitments for the issuance and purchase of Fannie Mae or Ginnie Mae mortgage-backed securities that will be secured by the underlying loans.

A rollforward of our warehouse receivables is as follows (dollars in thousands):

Beginning balance at December 31, 2019	$	993,058
Origination of mortgage loans		7,162,747
Gains (premiums on loan sales)		33,185
Proceeds from sale of mortgage loans:
Sale of mortgage loans		(7,387,942	)
Cash collections of premiums on loan sales		(33,185	)
Proceeds from sale of mortgage loans		(7,421,127	)
Net decrease in mortgage servicing rights included in warehouse receivables		(2,733	)
Ending balance at June 30, 2020	$	765,130

The following table is a summary of our warehouse lines of credit in place as of June 30, 2020 and December 31, 2019 (dollars in thousands):

			June 30, 2020				December 31, 2019
Lender	Current Maturity	Pricing	Maximum Facility Size		Carrying Value		Maximum Facility Size		Carrying Value
JP Morgan Chase Bank, N.A. (JP Morgan)	10/19/2020	daily one-month LIBOR plus 1.30%	$	985,000	$	399,740	$	985,000	$	267,075
JP Morgan	10/19/2020	daily one-month LIBOR plus 2.75%		15,000		—		15,000		—
Capital One, N.A. (Capital One) (1)	7/27/2020	daily one-month LIBOR plus 1.25%		200,000		75,537		200,000		39,538
Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program	Cancelable anytime	daily one-month LIBOR plus 1.35%, with a LIBOR floor of 0.35%		450,000		75,840		450,000		360,784
TD Bank, N.A. (TD Bank) (2)	6/30/2021	daily floating rate LIBOR plus 1.15%		400,000		34,245		800,000		92,266
Bank of America, N.A. (BofA) (3)	5/26/2021	(4)		350,000		118,857		350,000		189,465
BofA	(5)	daily one-month LIBOR plus 1.15%		—		—		250,000		17,457
MUFG Union Bank, N.A. (Union Bank) (6)	7/28/2020	daily one-month LIBOR plus 1.20%		350,000		49,675		350,000		10,590
			$	2,750,000	$	753,894	$	3,400,000	$	977,175

(1)	This facility expired on July 27, 2020 and was not renewed.

(2)	Effective July 1, 2020, this facility was amended and provides for a maximum aggregate principal amount of $400.0 million, in addition to an uncommitted $400.0 million temporary line of credit. The interest rate remains unchanged and the revised maturity date is June 30, 2021.

(3)

After a temporary extension on the initial maturity date of May 27, 2020, effective June 10, 2020, this facility was amended with a revised maturity date of May 26, 2021. The total commitment amount of $350.0 million includes a separate sublimit borrowing in the amount of $100.0 million, which can be utilized for specific purposes as defined within the agreement. As of June 30, 2020, the sublimit borrowing has not been utilized.

(4)

Effective June 10, 2020, the interest rate on this facility was as follows: (i) a LIBOR daily floating rate for such day, plus 1.50% on the general facility and (ii) a LIBOR daily floating rate for such day, plus 1.75% on the separate sublimit borrowing. Effective July 24, 2020, this facility was amended with a revised interest rate of LIBOR daily floating rate for such day, plus 1.40% on the general facility. No changes were made to the rate on the separate sublimit borrowing.

(5)	This facility expired on May 27, 2020 and was not renewed.

(6)

On June 28, 2019, we added a new warehouse facility for $200.0 million with Union Bank. This facility contains an accordion feature which allows for temporary increases not to exceed an additional $150.0 million. If utilized, the additional borrowings must be in predefined multiples and are not to occur more than three times within twelve consecutive months. Since inception, no short-term temporary increases have been requested. On June 26, 2020, the maturity date was extended to July 28, 2020. Effective July 28, 2020, we amended this facility such that it expires on August 27, 2020.

During the six months ended June 30, 2020, we had a maximum of $1.8 billion of warehouse lines of credit principal outstanding.