NOTE 10FANNIE MAE COMMITMENTS AND PLEDGED SECURITIES Fannie Mae DUS Related Commitments Commitments for the origination and subsequent sale and delivery of loans to Fannie Mae represent those mortgage loan transactions where the borrower has locked an interest rate and scheduled closing, and the Company has entered into a mandatory delivery commitment to sell the loan to Fannie Mae. As discussed in NOTE 9, the Company accounts for these commitments as derivatives recorded at fair value. The Company is generally required to share the risk of any losses associated with loans sold under the Fannie Mae DUS program. The Company is required to secure these obligations by assigning restricted cash balances and securities to Fannie Mae, which are classified as Pledged securities, at fair value on the Condensed Consolidated Balance Sheets. The amount of collateral required by Fannie Mae is a formulaic calculation at the loan level and considers the balance of the loan, the risk level of the loan, the age of the loan, and the level of risk-sharing. Fannie Mae requires restricted liquidity for Tier 2 loans of 75 basis points, which is funded over a 48-month period that begins upon delivery of the loan to Fannie Mae. Pledged securities held in the form of money market funds holding U.S. Treasuries are discounted 5%, and multifamily Agency mortgage-backed securities (Agency Multifamily MBS) are discounted 4% for purposes of calculating compliance with the restricted liquidity requirements. As seen below, the Company held substantially all of its pledged securities in Agency Multifamily MBS as of September 30, 2019. The majority of the loans for which the Company has risk sharing are Tier 2 loans. The Company is in compliance with the September 30, 2019 collateral requirements as outlined above. As of September 30, 2019, reserve requirements for the DUS loan portfolio will require the Company to fund $66.9 million in additional pledged securities over the next 48 months, assuming no further principal paydowns, prepayments, or defaults within the at risk portfolio. Fannie Mae periodically reassesses the DUS Capital Standards and may make changes to these standards in the future. The Company generates sufficient cash flow from its operations to meet these capital standards and does not expect any future changes to have a material impact on its future operations; however, any future changes to collateral requirements may adversely impact the Companys available cash. Fannie Mae has established standards for capital adequacy and reserves the right to terminate the Company's servicing authority for all or some of the portfolio if at any time it determines that the Company's financial condition is not adequate to support its obligations under the DUS agreement. The Company is required to maintain acceptable net worth as defined in the agreement, and the Company satisfied the requirements as of September 30, 2019. The net worth requirement is derived primarily from unpaid balances on Fannie Mae loans and the level of risk sharing. At September 30, 2019, the net worth requirement was $191.4 million, and the Company's net worth, as defined in the requirements, was $689.4 million, as measured at our wholly owned operating subsidiary, Walker &amp; Dunlop, LLC. As of September 30, 2019, the Company was required to maintain at least $37.8 million of liquid assets to meet operational liquidity requirements for Fannie Mae, Freddie Mac, HUD, and Ginnie Mae. As of September 30, 2019, the Company had operational liquidity, as defined in the requirements, of $228.5 million, as measured at our wholly owned operating subsidiary, Walker &amp; Dunlop, LLC. Pledged Securities, at Fair Value  Pledged securities, at fair value consisted of the following balances as of September 30, 2019 and 2018 and December 31, 2018 and 2017: ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? September 30, ? December 31, ? (in thousands) 2019 2018 2018 2017 Pledged cash and cash equivalents: ? ? ? ? ? ? ? ? ? ? ? ? Restricted cash $ 4,521 ? $ 3,434 ? $ 3,029 ? $ 2,201 ? Money market funds ? 840 ? ? 36,891 ? ? 6,440 ? ? 86,584 ? Total pledged cash and cash equivalents $ 5,361 ? $ 40,325 ? $ 9,469 ? $ 88,785 ? Agency debt securities 114,941 ? ? 68,737 ? 106,862 ? 9,074 ? Total pledged securities, at fair value $ 120,302 ? $ 109,062 ? $ 116,331 ? $ 97,859 ? ? The information in the preceding table is presented to reconcile beginning and ending cash, cash equivalents, restricted cash, and restricted cash equivalents in the Condensed Consolidated Statements of Cash Flows as more fully discussed in NOTE 2. The investments in Agency debt securities consist of Agency Multifamily MBS and are all accounted for as AFS securities. The following table provides additional information related to the AFS Agency Multifamily MBS as of September 30, 2019 and December 31, 2018: ? ? ? ? ? ? ? ? Fair Value and Amortized Cost of Agency Multifamily MBS (in thousands) September 30, 2019 December 31, 2018 Fair value $ 114,941 ? $ 106,862 ? Amortized cost ? 113,586 ? ? 106,963 ? Total gains for securities with net gains in AOCI ? 1,481 ? ? 77 ? Total losses for securities with net losses in AOCI (126) ? (178) ? ? The Company does not intend to sell any of the Agency debt securities, nor does the Company believe that it is more likely than not that it would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. The following table provides contractual maturity information related to the Agency Multifamily MBS. The money market funds invest in short-term Federal Government and Agency debt securities and have no stated maturity date. ? ? ? ? ? ? ? ? ? September 30, 2019 ? Detail of Agency Multifamily MBS Maturities (in thousands) Fair Value Amortized Cost Within one year $  ? $  ? After one year through five years ? 941 ? ? 917 ? After five years through ten years ? 93,586 ? ? 93,686 ? After ten years 20,414 ? ? 18,983 ? Total $ 114,941 ? $ 113,586 ? ?