Item 1.02. Termination of a Material Definitive Agreement
On August 19, 2022, loanDepot.com, LLC, a Delaware limited liability company and
an indirect majority-owned subsidiary of loanDepot, Inc. (the "Company"),
decided to reduce its funding capacity based on current and projected mortgage
loan originations by exercising its right to prepay in full its 2020-2
Securitization Facility (as defined below) and terminating (a) its Master
Repurchase Agreement, dated as of December 17, 2020 (as amended through the date
hereof, the "MRA"), by and among the Company, as seller, Mello Warehouse
Securitization Trust 2020-2 ("MWST 2020-2"), as buyer; (b) its Indenture, dated
as of December 17, 2020 (the "Indenture"), between MWST 2020-2, as issuer, the
Company, as servicer, and U.S. Bank National Association, as indenture trustee,
note calculation agent, standby servicer and initial securities intermediary;
and (c) certain ancillary agreements (together with the Indenture and the MRA,
the "2020-2 Securitization Facility").
Pursuant to the Indenture, the MWST 2020-2 initially issued $500 million of
notes (the "MWST Notes"). The MWST Notes were backed by a revolving warehouse
line of credit, secured by newly originated, first-lien, fixed rate or
adjustable rate, residential mortgage loans which are originated in accordance
with the criteria of Fannie Mae or Freddie Mac for the purchase of mortgage
loans or in accordance with the criteria of Ginnie Mae for the guarantee of
securities backed by mortgage loans and other eligibility criteria set forth in
the MRA.
No borrowings are currently outstanding under the 2020-2 Securitization Facility
and the Company did not incur any termination penalties as a result of the
termination of the 2020-2 Securitization Facility.
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