Asset-Backed Financing of a Variable Interest Entity at Fair Value

12 Months Ended

Dec. 31, 2016

Asset-Backed Financing of a Variable Interest Entity at Fair Value

Note 19—Asset-Backed Financing of a Variable Interest Entity at Fair Value

Following is a summary of financial information relating to the asset-backed financing of a VIE:

		Year ended December 31,
		2016			2015			2014
	(dollars in thousands)
Weighted-average fair value		$	338,582		$	186,430		$	167,752
Interest expense		$	12,091		$	6,840		$	6,490
Weighted-average effective interest rate			3.32	%		3.35	%		3.82	%

	December 31,
	2016			2015
	(dollars in thousands)
Carrying value	$	353,898		$	247,690
UPB	$	355,494		$	248,284
Weighted-average interest rate		3.50	%		3.50	%

The asset-backed financing of a VIE is a non-recourse liability and secured solely by the assets of a consolidated VIE and not by any other assets of the Company. The assets of the VIE are the only source of funds for repayment of the asset-backed financing.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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