Short-Term Debt

We enter into repurchase agreements, bank warehouse agreements, and other forms of collateralized (and generally uncommitted) short-term borrowings with several banks and major investment banking firms. At September 30, 2017, we had outstanding agreements with several counterparties and we were in compliance with all of the related covenants. For additional information about these financial covenants and our short-term debt, see Part I, Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q and Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2016.

The table below summarizes our short-term debt, including the facilities that are available to us, the outstanding balances, the weighted average interest rate, and the maturity information at September 30, 2017 and December 31, 2016.

Table 11.1 – Short-Term Debt



	September 30, 2017
(Dollars in Thousands)	Number of Facilities	Outstanding Balance		Limit		Weighted Average Interest Rate		Maturity	Weighted Average Days Until Maturity
Facilities
Residential loan warehouse	4	$	438,243	$	1,325,000	2.80	%	12/2017-8/2018	150
Real estate securities repo	8	549,811		—		2.46	%	10/2017-12/2017	28
Total Short-Term Debt Facilities	12	988,054
Convertible notes, net	N/A	250,142		—		4.63	%	4/2018	197
Total Short-Term Debt		$	1,238,196



	December 31, 2016
(Dollars in Thousands)	Number of Facilities	Outstanding Balance		Limit		Weighted Average Interest Rate		Maturity	Weighted Average Days Until Maturity
Facilities
Residential loan warehouse	4	$	485,544	$	1,325,000	2.40	%	1/2017-12/2017	206
Real estate securities repo	7	305,995		—		1.91	%	1/2017-3/2017	24
Total Short-Term Debt	11	$	791,539

Borrowings under our facilities are generally charged interest based on a specified margin over the one-month LIBOR interest rate. At September 30, 2017, all of these borrowings were under uncommitted facilities and were due within 364 days (or less) of the borrowing date.

During the three months ended June 30, 2017, $288 million principal amount of 4.625% convertible senior notes and $2 million of unamortized deferred issuance costs were reclassified from long-term debt to short-term debt, as the maturity of the notes was less than one year as of April 2017. Additionally, during the three months ended June 30, 2017, we repurchased $37 million par value of these notes at a premium and recorded a loss on extinguishment of debt of $1 million in Realized gains, net on our consolidated statements of income. At September 30, 2017, the accrued interest payable balance on this debt was $5 million. See Note 13 for additional information on our convertible notes.

The fair value of held-for-sale residential loans and real estate securities pledged as collateral under our short-term debt facilities was $493 million and $663 million, respectively, at September 30, 2017 and $534 million and $363 million, respectively, at December 31, 2016. For the three and nine months ended September 30, 2017, the average balances of our short-term debt facilities were $1.07 billion and $0.97 billion, respectively. At September 30, 2017 and December 31, 2016, accrued interest payable on our short-term debt facilities was $5 million and $3 million, respectively.

We also maintain a $10 million committed line of credit with a financial institution that is secured by certain mortgage-backed securities with a fair market value of $6 million at September 30, 2017. At both September 30, 2017 and December 31, 2016, we had no outstanding borrowings on this facility.

Remaining Maturities of Short-Term Debt

The following table presents the remaining maturities of our secured short-term debt by the type of collateral securing the debt as well as our convertible notes at September 30, 2017.

Table 11.2 – Short-Term Debt by Collateral Type and Remaining Maturities



	September 30, 2017
(In Thousands)	Within 30 days		31 to 90 days		Over 90 days		Total
Collateral Type
Held-for-sale residential loans	$	—	$	120,219	$	318,024	$	438,243
Real estate securities	422,300		127,511		—		549,811
Total Secured Short-Term Debt	422,300		247,730		318,024		988,054
Convertible notes, net	—		—		250,142		250,142
Total Short-Term Debt	$	422,300	$	247,730	$	568,166	$	1,238,196