TMSF Holdings Inc (fka TMFZ)

[chinditone]

Did anyone else notice this from the 10K - that the Early Purchase Facility from their loan warehouse was increased by 50% - I think it is very good news:

Warehouse Facilities:
As of December 31, 2004 the company had loan origination financing facilities with three financial institutions for a total funding capacity of $220 million. This included an Early Purchase facility with a maximum concentration amount of $100 million. This facility was subsequently increased to $150 million in March 2005. The cost of borrowing on these lines are a variable rate equal to 1 month LIBOR plus a margin between 2.25% and 3.75%. As of year ended December 31, 2003 we had a warehouse line in the amount of $50 million with IMPAC Warehouse Lending Group. The interest rate on this line was prime plus 0.5% subject to increase based on the length of time loans are held on the warehouse line.


Our business requires a significant amount of cash and if it is not available our business will be significantly harmed:

Our primary source of cash is our existing warehouse credit facilities and the proceeds from the sales of our mortgage loans. We require substantial cash to fund our mortgage loan originations, to pay our mortgage loan origination expenses and to hold our mortgage loans pending sale. Our warehouse credit facilities also require us to observe certain financial covenants, including the maintenance of certain levels of cash and general liquidity.