Quarterly report pursuant to Section 13 or 15(d)

Term Notes Payable

v3.22.2.2
Term Notes Payable
 9 Months Ended
Sep. 30, 2022
Term Notes Payable [Abstract]  
Term Notes Payable Term Notes Payable
The debt issued in connection with the Company’s on-balance sheet securitization is classified as term notes payable and carried at outstanding principal balance, which was $400.0 million as of both September 30, 2022 and December 31, 2021, net of any unamortized deferred debt issuance costs, on the Company’s condensed consolidated balance sheets. As of September 30, 2022 and December 31, 2021, the outstanding amount due on term notes payable was $397.7 million and $396.8 million, net of deferred debt issuance costs, with a weighted average interest rate of 5.88% and 2.90% and weighted average remaining maturities of 1.7 years and 2.5 years. The Company’s term notes incorporate LIBOR as the referenced rate and mature after the phase-out of LIBOR. However, the related agreements have provisions in place that provide for an alternative to LIBOR upon its phase-out. See Note 2 - Basis of Presentation and Significant Accounting Policies for further discussion of the transition away from LIBOR.
At September 30, 2022 and December 31, 2021, the Company pledged MSR with a carrying value of $500.0 million and $500.0 million and weighted average underlying loan coupon of 3.30% and 3.36%, respectively, as collateral for term notes payable. Additionally, as of September 30, 2022 and December 31, 2021, $0.2 million and $0.2 million of cash was held in restricted accounts as collateral for the future payment obligations of outstanding term notes payable, respectively.