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Securitized Debt and Securitized Debt at Fair Value | 9 Months Ended
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Sep. 30, 2023
Transfers and Servicing [Abstract] |
Securitized Debt and Securitized Debt at Fair Value | Note 10 — Securitized Debt and Securitized Debt at Fair Value As of September 30, 2023, the Company is the sole beneficial interest holder of twenty-three Trusts, which are variable interest entities included in the consolidated financial statements. The securitization 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 10%–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 April 2046 through July 2053. The following tables summarize securitized debt and securitized debt at fair value as of September 30, 2023 and December 31, 2022 ($ in thousands):
|  | September 30, 2023 |
(in thousands) |  | Securitized debt, net |  |  | Securitized debt at fair value |  |  | Total securitized debt |
Securitized debt |  | $ | 2,546,709 |  |  | $ | 690,371 |  |  | $ | 3,237,080 |
Valuation adjustments on FVO securitized debt |  |  | — |  |  |  | (21,232 | ) |  |  | (21,232 | )
Deferred issuance costs and discounts |  |  | (42,375 | ) |  |  | — |  |  |  | (42,375 | )
Total securitized debt and securitized debt at fair value |  | $ | 2,504,334 |  |  | $ | 669,139 |  |  | $ | 3,173,473 |
|  | December 31, 2022 |
(in thousands) |  | Securitized debt, net |  |  | Securitized debt at fair value |  |  | Total securitized debt |
Unpaid principal balance |  | $ | 2,788,908 |  |  | $ | — |  |  | $ | 2,788,908 |
Valuation adjustments on FVO securitized debt |  |  | — |  |  |  | — |  |  |  | — |
Deferred issuance costs and discounts |  |  | (52,618 | ) |  |  | — |  |  |  | (52,618 | )
Total securitized debt and securitized debt at fair value |  | $ | 2,736,290 |  |  | $ | — |  |  | $ | 2,736,290 |
The following table presents the effective interest rate of securitized debt and securitized debt at fair value for the nine months ended September 30, 2023 and 2022 ($ in thousands):
|  | Nine Months Ended September 30, |
Securitized debt: |  | 2023 |  |  | 2022 |
Interest expense |  | $ | 119,377 |  |  | $ | 75,191 |
Average outstanding unpaid principal balance |  |  | 3,044,511 |  |  |  | 2,331,672 |
Effective interest rate (1) |  |  | 5.23 | % |  |  | 4.30 | %
(1) Effective interest rate represents annualized interest expense divided by average gross outstanding balance, which includes average rates of 4.67% and 3.59%, and debt issuance cost amortization of 0.56% and 0.71% for the nine months ended September 30, 2023 and 2022, respectively.

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