TWO Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Revolving Credit Facilities

Revolving Credit Facilities

6 Months Ended

Jun. 30, 2018

Revolving Credit Facilities [Abstract]

To finance MSR, the Company has entered into revolving credit facilities collateralized by the value of the MSR pledged. As of June 30, 2018 and December 31, 2017, the Company had outstanding short- and long-term borrowings under revolving credit facilities of $170.0 million and $20.0 million with a weighted average borrowing rate of 5.33% and 5.14% and weighted average remaining maturities of 4.45 and 0.96 years, respectively.

At June 30, 2018 and December 31, 2017, borrowings under revolving credit facilities had the following remaining maturities:



(in thousands)	June 30, 2018		December 31, 2017
Within 30 days	$	—	$	—
30 to 59 days	—		—
60 to 89 days	—		—
90 to 119 days	—		—
120 to 364 days	20,000		20,000
One year and over	150,000		—
Total	$	170,000	$	20,000

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 June 30, 2018 and December 31, 2017, MSR with a carrying value of $541.1 million and $159.5 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.