Warehouse, repo (SIFMA MRA), gestation, EBO, MSR-secured lending, servicing-advance financing, Master Repurchase Agreement amendments, Acknowledgment Agreements in their financing-protection role.
On the earliest of five events, and only one of them is a sale. In a mortgage warehouse loan and security agreement of the secured-lending type, each advance matures on the earliest of 45 days from the funding date, the purchase date when an investor takes the loan, the date the loan goes 60 or…
How is a warehouse margin call calculated? In a warehouse line documented as a repurchase facility, the lender subtracts the collateral value it assigns to the purchased mortgage loans from a margin amount derived from the funding outstanding, and the shortfall is the margin deficit the seller must eliminate. Under the Master Repurchase Agreement, September…
Why are mortgage warehouse banks enforcing stricter lending terms and covenants in 2026? Warehouse lending banks are demanding tighter contract terms due to persistent volume compression and heightened Basel III capital costs associated with holding mortgage exposures on depository balance sheets. To manage renewing facilities successfully, borrowing lenders must navigate aggressive new bank requests for…
Which legal provisions dictate the outcome of a counterparty workout in gestation repurchase facilities? The structural resolution of a gestation repo facility workout depends on highly technical contractual provisions, specifically true sale versus secured financing characterization, strict margin call mechanics, and clear set-off and netting parameters. How these clauses govern underlying asset eligibility, concentration limits,…
How should secondary mortgage market counterparties prepare their legacy agreements for a future GSE conservatorship exit? Counterparties must proactively restructure legacy transactional documents to prevent administrative or economic defaults when Fannie Mae and Freddie Mac transition to private ownership. Reviewing active facilities involves rewriting corporate definitions of the Enterprises, linking collateral requirements to flexible selling…
