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 (dollars in thousands):



	December 31, 2016				December 31, 2015
	Carrying Value		Weighted-Average Stated Interest Rate ⁽¹⁾		Carrying Value		Weighted-Average Stated Interest Rate⁽¹⁾
Mortgage-backed debt at amortized cost (unpaid principal balance of $434,667 and $474,759 at December 31, 2016 and 2015, respectively)	$	429,931	6.07	%	$	469,339	6.07	%
Mortgage-backed debt at fair value (unpaid principal balance of $518,317 and $585,839 at December 31, 2016 and 2015, respectively)	514,025		5.70	%	582,340		5.53	%
Total mortgage-backed debt	$	943,956	5.87	%	$	1,051,679	5.77	%

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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 of the Residual and Non-Residual Trusts collateralizing this debt and draws under LOCs issued by a third party and serving as credit enhancements to certain of the 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 2036 to 2040. The maturity of the Company's mortgage-backed debt is directly affected by the rate of 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 voluntary redemption according to the specific terms of the respective indenture agreements, including the option to exercise a clean-up call. Under the mortgage-backed debt issued by the Non-Residual Trusts, the Company has certain obligations to exercise mandatory clean-up calls for each of these trusts at their earliest exercisable 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. The majority of the call obligations in 2017 are anticipated to occur during the second half of the year. At December 31, 2016, mortgage-backed debt was collateralized by $1.0 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 5 for further information.