Notification of Commitment Reduction under Second Restated Loan and Security Agreement between Ryland Mortgage Company and Bank One, Texas N.A.

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Summary

Ryland Mortgage Company is notifying Bank One, Texas N.A. of its decision to reduce the total commitment amount under their Second Restated Loan and Security Agreement from $200 million to $150 million, effective August 1, 2000. This change is due to Ryland Mortgage exiting the spot loan business and improving its loan delivery process, making a smaller warehouse line sufficient for its needs. The letter serves as formal notice of this adjustment.

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EX-10.12 4 a66715ex10-12.txt EXHIBIT 10.12 1 Exhibit 10.12 July 19, 2000 Mr. Greg Martin Bank One, Texas N.A. Mortgage Finance Group 1717 Main Street Dallas, TX 75201 Dear Greg, This letter will serve as notification of Ryland Mortgage Company's desire to decrease the total amount of commitment under terms of the Second Restated Loan and Security Agreement, dated as of February 18, 2000 (warehouse agreement) from $200 million to $150 million. I would like to have this decrease effective as of August 1, 2000. In light of Ryland Mortgage's decision to exit the spot loan business and the improved efficiencies we have developed in our loan delivery process, we project that a warehouse line of $150 million is sufficient to meet our needs. Please call me if you have any questions. Thank you for your assistance. Sincerely, Susan M. Cass Senior Vice President/CFO