Uncommitted Master Repurchase Agreement

As a result of the master buyback agreement, the company`s total financing capacity, including all master`s transactions, early financing facilities, unsecured credit lines, MSR credit lines and early redemption facilities, stood at $27.75 billion as of October 9, 2020. This figure represents the 30, against $ 22.28 billion, or $ 19.13 billion. On October 9, 2020 (Closing Date), Quicken Loans, LLC (the "Company"), a Michigan limited liability company and a 100% subsidiary of Rocket Companies, Inc. as a seller, entered into a master repurchase agreement (the "Master Buyback") with Bank of Montreal as the Purchaser ("Buyer"). The master`s repurchase agreement provides $500.0 million in unsecured financing for the creation of GSE-compatible mortgages. The expiry date of the master buyback agreement is October 9, 2021. For bonds in the context of the master repo activity, interest rates are calculated at interest rates per annum, calculated as a one-month LIBOR, plus an applicable margin (determined on the basis of the nature of the mortgages granted by each loan). All purchases of loans under this Agreement shall initially be considered committed up to the amount pledged, and then the remainder, if any, shall be considered unincurred up to the amount not committed. An unrelated facility is an agreement between a lender and a borrower where the lender agrees to provide short-term funds to the borrower. This situation is different from a promised facility, which includes clearly defined conditions, defined by the lending institution and imposed on the borrower. Unrelated entities are used to finance the seasonal or temporary needs of businesses whose revenues fluctuate, for example. B to pay creditors, to obtain commercial discounts, individual or one-off transactions and the performance of payroll obligations.

Since small businesses may find it difficult to have an appropriate monthly cash flow, an un tied facility can help them work until they are more present in the market and increase their annual turnover. Unins promised facilities are generally less costly than promised facilities, as the lender is not required to extend the loan; when financing is made available, it is short-term and the credit risk is relatively low. The entity is also subject to certain custody financial obligations under the Master Repurchase Agreement, which require the entity not to exceed, at the end of each calendar month, an overall debt-to-material net asset ratio and to meet certain minimum requirements for net profit, liquidity and net assets before tax. In addition, the master buyback agreement provides that the company is required to remedy a margin deficit at the request of the buyer. An overdraft facility or working capital mechanism solves companies` short-term cash flow problems. The bank or any other financial institution decides whether to lend money and limits it. Since an overdraft is usually payable on demand, it is not suitable for purposes such as financing a larger acquisition. As a general rule, the lender does not invoke the overdraft unless the borrower`s financial situation or activities are of concern to the lender. Seller hereby acknowledges that Buyer is not required to complete a transaction under this Agreement with respect to the unincurred amount.

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