9. Secured Financing Agreements

The following table is a summary of our secured financing agreements in place as of March 31, 2016 and December 31, 2015 (dollars in thousands):


										Carrying value at
	Current	Extended			Pledged Asset		Maximum			March 31,		December 31,
	Maturity	Maturity(a)	Pricing		Carrying Value		Facility Size			2016		2015
Lender 1 Repo 1	(b)	(b)	LIBOR + 1.85% to 5.25%		$	2,155,043	$	1,600,000		$	1,340,634	$	975,735
Lender 2 Repo 1	Oct 2017	Oct 2020	LIBOR + 1.75% to 2.75%			285,237		500,000			175,912		233,705
Lender 3 Repo 1	May 2017	May 2019	LIBOR + 2.50% to 2.85%			152,414		109,745			109,745		131,997
Lender 4 Repo 1	Oct 2016	Oct 2017	LIBOR + 2.00%			385,003		301,518			301,518		309,498
Lender 4 Repo 2	Dec 2018	Dec 2020	LIBOR + 2.50%			192,257		1,000,000	(c)		151,999		—
Lender 6 Repo 1	Aug 2018	N/A	LIBOR + 2.50% to 3.00%			702,162		500,000			413,104		491,263
Lender 7 Secured Financing	Jul 2018	Jul 2019	LIBOR + 2.75%	(d)		109,285		650,000	(e)		—		38,055
Conduit Repo 1	Sep 2016	N/A	LIBOR + 1.95% to 3.35%			—		150,000			—		80,741
Conduit Repo 2	Nov 2016	N/A	LIBOR + 2.10%			—		150,000			—		—
Conduit Repo 3	Feb 2018	Feb 2019	LIBOR + 2.10%			96,986		150,000			71,599		66,041
Conduit Repo 4	Oct 2017	Oct 2020	LIBOR + 2.25%			16,842		100,000			12,188		—
CMBS Repo 1	(f)	(f)	LIBOR + 1.90%			32,710		21,354			21,354		—
CMBS Repo 2	Dec 2017	N/A	LIBOR + 2.35% to 2.70%			132,740		100,238			100,238		120,850
CMBS Repo 3	(g)	(g)	LIBOR + 1.40% to 1.85%			365,199		260,777			260,777		243,434
RMBS Repo 1	(h)	N/A	LIBOR + 1.90%			168,001		125,000			71,707		2,000
Investing and Servicing Segment Property Mortgages	June 2018 to Dec 2025	N/A	Various			133,136		106,055			100,715		82,964
Ireland Portfolio Mortgage	May 2020	N/A	EURIBOR + 1.69%			500,086		334,623			334,623		319,322
Woodstar Portfolio Mortgages	Nov 2025 to Jan 2026	N/A	3.72% to 3.81%			338,281		248,630			248,630		248,630
Woodstar Portfolio Government Financing	Mar 2026 to June 2049	N/A	1.00% to 5.00%			296,321		135,437			135,437		8,982
Term Loan	Apr 2020	N/A	LIBOR + 2.75%	(d)		3,015,838		656,578			656,578		658,270
FHLB Advances	Nov 2016	N/A	LIBOR + 0.37%			10,746		9,250			9,250		9,250
					$	9,088,287	$	7,209,205			4,516,008		4,020,737
Unamortized premium (discount), net											1,099		(1,702)
Unamortized deferred financing costs											(36,147)		(38,336)
										$	4,480,960	$	3,980,699

(a)

Subject to certain conditions as defined in the respective facility agreement.

(b)

Maturity date for borrowings collateralized by loans is January 2017 before extension options and January 2019 assuming exercise of initial extension options. Borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions and not to exceed January 2023.

(c)

The initial maximum facility size of $600.0 million may be increased to $1.0 billion at our option, subject to certain conditions.

(d)

Subject to borrower’s option to choose alternative benchmark based rates pursuant to the terms of the credit agreement. The term loan is also subject to a 75 basis point floor.

(e)

The initial maximum facility size of $450.0 million may be increased to $650.0 million at our option, subject to certain conditions.

(f)

Facility carries a rolling 11 month term which may reset monthly with the lender’s consent not to exceed December 2018. This facility carries no maximum facility size. Amount herein reflects the outstanding balance as of March 31, 2016.

(g)

Facility carries a rolling 12 month term which may reset monthly with the lender’s consent. Current maturity is March 2017. This facility carries no maximum facility size. Amount herein reflects the outstanding balance as of March 31, 2016.

(h)

The date that is 180 days after the buyer delivers notice to seller, subject to a maximum date of March 2017.

In the normal course of business, the Company is in discussions with its lenders to extend or amend any financing facilities which contain near term expirations.

During the three months ended March 31, 2016, we executed two mortgage facilities with aggregate borrowings of $16.0 million to finance commercial real estate acquired by our Investing and Servicing Segment. As of March 31, 2016, these facilities carry a remaining weighted average term of 4.9 years. One of the facilities carries a floating annual interest rate of LIBOR + 2.25% while the other facility carries a fixed annual interest rate of 3.00%.

During the three months ended March 31, 2016, we assumed 16 federal, state and county sponsored mortgage facilities (“Woodstar Portfolio Government Financing”) associated with certain properties acquired in our Woodstar Portfolio with aggregate outstanding balances of $126.7 million as of the acquisition dates.

In January 2016, we amended the CMBS Repo 2 facility to extend the maturity from December 2016 to December 2017.

In March 2016, we amended the Lender 2 Repo 1 facility to upsize available borrowings from $500.0 million to $600.0 million. This additional $100.0 million of borrowing capacity is exclusively for the financing of conduit mortgage loans and therefore this component of the Lender 2 Repo 1 facility is separately presented in the secured financing agreements table above as Conduit Repo 4.

Our secured financing agreements contain certain financial tests and covenants. Should we breach certain of these covenants it may restrict our ability to pay dividends in the future. As of March 31, 2016, we were in compliance with all such covenants.

The following table sets forth our five‑year principal repayments schedule for secured financings assuming no defaults and excluding loans transferred as secured borrowings. Our credit facilities generally require principal to be paid down prior to the facilities’ respective maturities if and when we receive principal payments on, or sell, the investment collateral that we have pledged. The amount reflected in each period includes principal repayments on our credit facilities that would be required if (i) we received the repayments that we expect to receive on the investments that have been pledged as collateral under the credit facilities, as applicable, and (ii) the credit facilities that are expected to have amounts outstanding at their current maturity dates are extended where extension options are available to us (amounts in thousands):


	Repurchase		Other Secured
	Agreements		Financing		Total
2016 (remainder of)	$	353,820	$	16,384	$	370,204
2017		1,186,779		9,662		1,196,441
2018		641,989		29,373		671,362
2019		594,290		19,196		613,486
2020		174,303		979,305		1,153,608
Thereafter		79,594		431,313		510,907
Total	$	3,030,775	$	1,485,233	$	4,516,008

Secured financing maturities for 2016 primarily relate to $221.9 million on the Lender 6 Repo 1 facility and $71.6 million on the Conduit Repo 3 facility.

For the three months ended March 31, 2016 and 2015, approximately $3.9 million and $3.5 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed consolidated statements of operations.

The following table sets forth our outstanding balance of repurchase agreements related to the following asset collateral classes as of March 31, 2016 and December 31, 2015 (amounts in thousands):


Class of Collateral	March 31, 2016		December 31, 2015
Loans held-for-investment	$	2,492,912	$	2,142,198
Loans held-for-sale		83,787		146,782
Investment securities		454,076		366,284
	$	3,030,775	$	2,655,264

We seek to mitigate risks associated with our repurchase agreements by managing risk related to the credit quality of our assets, interest rates, liquidity, prepayment speeds and market value. The margin call provisions under the majority of our repurchase facilities, consisting of 59% of these agreements, do not permit valuation adjustments based on capital markets activity. Instead, margin calls on these facilities are limited to collateral-specific credit marks. To monitor credit risk associated with the performance and value of our loans and investments, our asset management team regularly reviews our investment portfolios and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. For repurchase agreements containing margin call provisions for general capital markets activity, approximately 27% of these pertain to our loans held-for-sale, for which we manage credit risk through the purchase of credit index instruments. We further seek to manage risks associated with our repurchase agreements by matching the maturities and interest rate characteristics of our loans with the related repurchase agreements.