8-K: loanDepot Amends Mortgage Servicing Rights Program with Nomura
8-K Filing
loanDepot has amended its mortgage servicing rights program, replacing Atlas with Nomura Corporate Funding Americas as administrative agent and noteholder.
Summary
- loanDepot has amended its existing Ginnie Mae mortgage servicing rights (GNMA MSRs) program.
- Atlas Securitized Products, L.P. has resigned as administrative agent, and Nomura Corporate Funding Americas, LLC (NCFA) has been appointed as the successor administrative agent.
- The existing variable funding note (VFN) documents have been terminated, and new amended and restated documents have been entered into with NCFA.
- The amendments include updating the benchmark provisions, removing references to LIBOR, updating the Cumulative Interest Shortfall Amount Rate and Default Supplemental Fee Rate, and extending the maturity date to January 24, 2025.
- NCFA has purchased all of loanDepots rights, title and interest in the Series 2017-VF1 Notes, Series 2021-SAVF1 Notes, Series 2021-PIAVF1 Notes and Series 2017-MBSADV1 Notes.
- LD Holdings Group LLC has provided a Guaranty in favor of NCFA as buyer.
Sentiment
Score: 7
Explanation: The document is a routine update to existing agreements, with no significant positive or negative implications. The change in administrative agent is a neutral event.
Positives
- The amendment and restatement of the program documents provides for a continuation of the financing of the GNMA MSRs.
- The extension of the maturity date to January 24, 2025 provides additional time for the program.
Risks
- The document does not provide details on the financial impact of the changes.
- The document does not provide details on the terms of the new financing with NCFA.
Future Outlook
The amended documents extend the maturity date of the program to January 24, 2025.
Industry Context
This announcement reflects a shift in loanDepots financing partners for its mortgage servicing rights program, moving from Atlas to Nomura. This is not uncommon in the financial industry as companies seek to optimize their financing arrangements.
Comparison to Industry Standards
- The document does not provide enough information to compare the terms of this agreement to industry standards.
- It is common for mortgage companies to use repurchase agreements to finance their mortgage servicing rights.
- The use of a variable funding note structure is also common in the industry.
- The document does not provide enough information to compare the pricing of this agreement to other similar agreements.
Stakeholder Impact
- Shareholders may see a slight positive impact due to the continued financing of the mortgage servicing rights program.
- Employees will likely not be impacted by this change.
- Customers will not be impacted by this change.
- Suppliers will not be impacted by this change.
- Creditors will not be impacted by this change.
Next Steps
- loanDepot will continue to operate under the amended mortgage servicing rights program.
- NCFA will act as the administrative agent and noteholder for the program.
Key Dates
| Date | Description |
|---|---|
| August 11, 2017 | Date of the original GMSR Participation Agreement and Master Repurchase Agreement. |
| October 31, 2018 | Date of the Amended and Restated GMSR Participation Agreement and Master Repurchase Agreement. |
| October 26, 2018 | Date of the Term Note Purchase Agreement for the Series 2018-GT1 Notes. |
| November 15, 2021 | Date of the Second Amended and Restated GMSR Participation Agreement and Master Repurchase Agreement. |
| February 10, 2022 | Date of the Series 2021-SAVF1 Master Repurchase Agreement and the Series 2021-PIAVF1 Master Repurchase Agreement. |
| January 25, 2024 | Date of the Third Amended and Restated GMSR Participation Agreement, Third Amended and Restated Master Repurchase Agreement, Third Amended and Restated Base Indenture, Second Amended and Restated Series 2017-VF1 Indenture Supplement, Amended and Restated Series 2017-MBSADV1 Indenture Supplement, Amended and Restated Series 2021-SAVF1 Indenture Supplement, Amended and Restated Series 2021-PIAVF1 Indenture Supplement, Series 2017-VF1 Repurchase Agreement, Series 2021-SAVF1 Repurchase Agreement, Series 2021-PIAVF1 Repurchase Agreement, and the Guaranty. |
| January 24, 2025 | Extended maturity date of the Series 2017-VF1 Indenture Supplement, the Series 2017-MBSADV1 Indenture Supplement, the Series 2021-SAVF1 Indenture Supplement, and the Series 2021-PIAVF1 Indenture Supplement. |
| January 31, 2024 | Date of signature of the 8-K filing. |
Keywords
mortgage servicing rights, GNMA MSRs, loanDepot, Nomura, NCFA, variable funding notes, VFN, repurchase agreement, LIBOR, financing
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