Mortgage-Backed Debt

Mortgage-backed debt consists of debt issued by the Residual and Non-Residual Trusts that have been consolidated by the Company. The mortgage-backed debt of the Residual Trusts is carried at amortized cost while the mortgage-backed debt of the Non-Residual Trusts is carried at fair value.

Provided in the table below is information regarding the mortgage-backed debt issued by the consolidated Residual and Non-Residual Trusts (dollars in thousands):



	December 31, 2014				December 31, 2013
	Amortized Cost		Weighted-Average Stated Interest Rate ⁽¹⁾		Amortized Cost		Weighted-Average Stated Interest Rate⁽¹⁾
Mortgage-backed debt at amortized cost (unpaid principal balance of $1,099,997 and $1,204,539 at December 31, 2014 and 2013, respectively)	$	1,098,292	6.63	%	$	1,203,084	6.68	%
Mortgage-backed debt at fair value (unpaid principal balance of $657,174 and $735,379 at December 31, 2014 and 2013 respectively)	653,167		5.45	%	684,778		5.85	%
Total mortgage-backed debt	$	1,751,459	6.19	%	$	1,887,862	6.37	%

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(1)	Represents the weighted-average stated interest rate, which may be different from the effective rate which considers the amortization of discounts and issuance costs.

Borrower remittances received on the residential loans collateralizing this debt, as well as draws under LOCs servicing as credit enhancements to certain Non-Residual Trusts, are used to make principal and interest payments due on the mortgage-backed debt. The Trust Notes issued by the Residual Trusts have final maturities ranging from 2029 to 2050. The maturity of the Company's mortgage-backed debt is directly affected by principal prepayments on the collateral. As a result, the actual maturity of the mortgage-backed debt is likely to occur earlier than the stated maturity. Certain of the Company’s mortgage-backed debt issued by the Residual Trusts is subject to redemption according to specific terms of the respective indenture agreements, including the option to exercise a clean-up call. The mortgage-backed debt issued by the Non-Residual Trusts is subject to mandatory clean-up calls. The Company is obligated to exercise the clean-up calls on the earliest possible call date, which is the date the principal amount of each loan pool falls to 10% of the original principal amount. The Company expects to call these securitizations beginning in 2017 and continuing through 2019. At December 31, 2014, mortgage-backed debt was collateralized by $2.2 billion of assets including residential loans, receivables related to the Non-Residual Trusts, real estate owned and restricted cash and cash equivalents. Refer to the Consolidated Variable Interest Entities section of Note 4 for further information.