Warehouse Receivables & Warehouse Lines of Credit

3 Months Ended

Mar. 31, 2024

Warehouse Receivables And Warehouse Lines Of Credit [Abstract]

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 March 31, 2024 and December 31, 2023, 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 MBS that will be secured by the underlying loans.

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


Beginning balance at December 31, 2023	$	675
Origination of mortgage loans	2,216
Gains (premiums on loan sales)	8
Proceeds from sale of mortgage loans:
Sale of mortgage loans	(2,046)
Cash collections of premiums on loan sales	(8)
Proceeds from sale of mortgage loans	(2,054)
Net increase in mortgage servicing rights included in warehouse receivables	3
Ending balance at March 31, 2024	$	848

The following table is a summary of our warehouse lines of credit in place as of March 31, 2024 and December 31, 2023 (dollars in millions):


			March 31, 2024				December 31, 2023
Lender	Current Maturity	Pricing	Maximum Facility Size		Carrying Value		Maximum Facility Size		Carrying Value
JP Morgan Chase Bank, N.A. (JP Morgan)	12/13/2024	daily floating Secured Overnight Financing Rate (SOFR) plus 1.50%, with a SOFR adjustment of 0.05%	$	1,335	$	711	$	1,335	$	613
JP Morgan (Business Lending Activity)	12/13/2024	daily floating SOFR plus 2.75%, with a SOFR adjustment of 0.05%	15		1		15		—
Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program	Cancelable anytime	daily floating SOFR plus 1.45%, with a SOFR floor of 0.25%	650		20		650		7
TD Bank, N.A. (TD Bank) (1)	7/15/2024	daily floating SOFR plus 1.30%, with a SOFR adjustment of 0.10%	600		21		600		28
Bank of America, N.A. (BofA)	5/22/2024	daily floating SOFR plus 1.25%, with a SOFR adjustment of 0.10%	350		86		350		18
BofA	5/22/2024	daily floating SOFR plus 1.25%, with a SOFR adjustment of 0.10%	250		—		250		—

			$	3,200	$	839	$	3,200	$	666

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(1)Effective July 15, 2023, this facility was renewed and amended to a maximum aggregate principal amount of $300.0 million, with an uncommitted $300.0 million temporary line of credit and a maturity date of July 15, 2024. As of March 31, 2024, the uncommitted $300.0 million temporary line of credit was not utilized.

During the three months ended March 31, 2024, we had a maximum of $1.2 billion of warehouse lines of credit principal outstanding.