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Securitizations Net

9 Months Ended

Sep. 30, 2021

Note 7 — Securitizations, Net

From May 2011 through September 2021, the Company completed seventeen securitizations of $3.9 billion of loans, issuing $3.5 billion of securities to third parties through seventeen respective Trusts. The Company is the sole beneficial interest holder of the remaining Trusts, which are variable interest entities included in the consolidated financial statements. The transactions are accounted for as secured borrowings under U.S. GAAP. The securities are subject to redemption by the Company when the stated principal balance is less than a certain percentage, ranging from 5%–30% of the original stated principal balance of loans at issuance. As a result, the actual maturity dates of the securities issued could be earlier than their respective stated maturity dates, ranging from September 2044 through August 2051.

The following table summarizes the outstanding balance, net of discounts and deal costs, of the securities and the effective interest rate for the nine months ended September 30, 2021 and 2020 (dollars in thousands):

	Nine Months Ended September 30,
Securitizations:	2021			2020
Securitizations, net	$	1,623,674		$	1,670,930
Interest expense		55,288			58,749
Average outstanding balance		1,574,999			1,728,131
Effective interest rate ⁽¹⁾		4.68	%		4.53	%

⁽¹⁾

Represents annualized interest expense divided by average gross outstanding balance and includes average rate of 3.97% and debt issuance cost amortization of 0.71% and average rate of 3.94% and debt issuance cost amortization of 0.59% for the nine months ended September 30, 2021 and 2020, respectively.