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Securitized Debt at Amortized Cost and Securitized Debt at Fair Value | 9 Months Ended
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Sep. 30, 2025
Transfers and Servicing [Abstract] |
Securitized Debt at Amortized Cost and Securitized Debt at Fair Value | Note 11 — Securitized Debt at Amortized Cost and Securitized Debt at Fair Value As of September 30, 2025, the Company is the sole beneficial interest holder of 33 Trusts, which are variable interest entities included in the consolidated financial statements. The securitization transactions are accounted for as secured b orrowings 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% to 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 July 2028 through September 2055. The following tables summarize securitized debt at amortized cost and securitized debt at fair value as of September 30, 2025 and December 31, 2024:
Securitized Debt, at Amortized Cost |  | September 30, 2025 |  |  | December 31, 2024 |
|  | (In thousands) |
Unpaid principal balance |  | $ | 1,813,334 |  |  | $ | 2,049,790 |
Deferred issuance costs and discounts |  |  | (30,184 | ) |  |  | (30,734 | )
Total securitized debt, at amortized cost |  | $ | 1,783,150 |  |  | $ | 2,019,056 |
Securitized Debt, at Fair Value |  | September 30, 2025 |  |  | December 31, 2024 |
|  | (In thousands) |
Unpaid principal balance |  | $ | 3,739,705 |  |  | $ | 2,219,218 |
Adjustment at issuance to recognize fair value (1) |  |  | (26,608 | ) |  |  | (18,231 | )
Fair value at issuance |  |  | 3,713,097 |  |  |  | 2,200,987 |
Valuation adjustment subsequent to issuance (2) |  |  | 37,675 |  |  |  | 6,421 |
Fair value adjustment related to refinance of securitization trust |  |  | (1,883 | ) |  |  | — |
Total securitized debt at fair value |  | $ | 3,748,889 |  |  | $ | 2,207,408 |
(1) Balance sheet adjustment to recognize fair value at issuance. This valuation adjustment is not recognized in net income. (2) Valuation adjustment recognized in net income. No valuation change is due to instrument specific credit risk as the Company’s (issuer) credit risk has not changed. The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of securitized debt at fair value as of September 30, 2025 and December 31, 2024:
|  | Fair Value |  |  | Unpaid Principal Balance |  |  | Difference |
|  | (In thousands) |
September 30, 2025 |  | $ | 3,748,889 |  |  | $ | 3,739,705 |  |  | $ | 9,184 |
December 31, 2024 |  |  | 2,207,408 |  |  |  | 2,219,218 |  |  |  | (11,810 | )
The following table presents the effective interest rate of securitized debt at amortized cost and securitized debt at fair value for the nine months ended September 30, 2025 and 2024:
|  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |
|  | ($ in thousands) |
Interest expense |  | $ | 220,788 |  |  | $ | 159,122 |
Average outstanding unpaid principal balance |  |  | 4,829,808 |  |  |  | 3,668,377 |
Effective interest rate (1) |  |  | 6.10 | % |  |  | 5.78 | %
(1) Effective interest rate represents annualized interest expense divided by average gross outstanding balance, which includes average rates of 5.96% and 5.53%, and debt issuance cost amortization of 0.14% and 0.25% for the nine months ended September 30, 2025 and 2024, respectively.

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