9. Secured Financing Agreements

The following table is a summary of our secured financing agreements in place as of September 30, 2017 and December 31, 2016 (dollars in thousands):


										Carrying Value at
	Current	Extended			Pledged Asset		Maximum			September 30,		December 31,
	Maturity	Maturity (a)	Pricing		Carrying Value		Facility Size			2017		2016
Lender 1 Repo 1	(b)	(b)	LIBOR + 1.75% to 5.75%		$	1,534,069	$	2,000,000		$	1,170,141	$	944,712
Lender 2 Repo 1	Oct 2017	Oct 2020	LIBOR + 1.75% to 2.75%			350,508		500,000			236,055		132,941
Lender 3 Repo 1	May 2018	May 2019	LIBOR + 2.75% to 3.10%			110,086		76,820			76,820		78,288
Lender 4 Repo 2	Dec 2018	Dec 2020	LIBOR + 2.00% to 3.25%			571,746		1,000,000	(c)		221,544		166,394
Lender 6 Repo 1	Aug 2020	N/A	LIBOR + 2.50% to 2.75%			724,164		600,000			475,555		182,586
Lender 6 Repo 2	Nov 2019	Nov 2020	GBP LIBOR + 2.75%			173,516		121,280			121,280		121,509
Lender 9 Repo 1	Dec 2017	Dec 2018	LIBOR + 1.65%			340,620		254,447			254,447		283,575
Lender 10 Repo 1	Mar 2020	Mar 2022	LIBOR + 2.00% to 2.75%			169,733		140,000			136,800		—
Lender 11 Repo 1	Jun 2019	Jun 2020	LIBOR + 2.75%			—		200,000			—		—
Lender 11 Repo 2	Sep 2018	Sep 2022	LIBOR + 2.25% to 2.75%			—		250,000			—		—
Lender 7 Secured Financing	Jul 2018	Jul 2019	LIBOR + 2.75%	(d)		46,800		650,000	(e)		—		—
Lender 8 Secured Financing	Aug 2019	N/A	LIBOR + 4.00%			30,147		75,000			18,226		43,555
Conduit Repo 2	Nov 2017	N/A	LIBOR + 2.25%			53,751		150,000			40,842		14,944
Conduit Repo 3	Feb 2018	N/A	LIBOR + 2.10%			136,254		150,000			103,678		—
Conduit Repo 4	Oct 2017	Oct 2020	LIBOR + 2.25%			—		100,000			—		—
MBS Repo 1	(f)	(f)	LIBOR + 1.90%			10,000		6,510			6,510		21,052
MBS Repo 2	Jun 2020	N/A	LIBOR/EURIBOR + 2.00% to 2.95%			261,066		191,184			191,184		239,434
MBS Repo 3	(g)	(g)	LIBOR + 1.32% to 1.95%			384,546		254,668			254,668		285,209
MBS Repo 4	(h)	N/A	LIBOR + 1.20% to 1.90%			179,384		225,000			2,000		5,633
Investing and Servicing Segment Property Mortgages	Feb 2018 to Jun 2026	N/A	Various			245,094		201,238			177,217		164,611
Ireland Portfolio Mortgage	May 2020	N/A	EURIBOR + 1.69%			491,298		344,525			344,525		309,246
Woodstar Portfolio Mortgages	Nov 2025 to Oct 2026	N/A	3.72% to 3.97%			369,519		276,748			276,748		276,748
Woodstar Portfolio Government Financing	Mar 2026 to Jun 2049	N/A	1.00% to 5.00%			308,805		133,967			133,967		135,584
Medical Office Portfolio Mortgages	Dec 2021 to Feb 2022	Dec 2023 to Feb 2024	LIBOR + 2.50%	(i)		741,304		527,124			497,613		491,197
Master Lease Portfolio Mortgages	Oct 2027	N/A	4.36% to 4.38%			471,762		265,900			265,900		—
Term Loan A	Dec 2020	Dec 2021	LIBOR + 2.25%	(d)		992,366		300,000			300,000		300,000
Revolving Secured Financing	Dec 2020	Dec 2021	LIBOR + 2.25%	(d)		—		100,000			—		—
FHLB	Feb 2021	N/A	LIBOR + 0.15% to 0.34%			338,956		250,000			250,000		—
					$	9,035,494	$	9,344,411			5,555,720		4,197,218
Unamortized net premium											2,579		2,640
Unamortized deferred financing costs											(43,604)		(45,732)
										$	5,514,695	$	4,154,126

(a)

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

(b)

Maturity date for borrowings collateralized by loans is September 2018 before extension options and September 2021 assuming exercise of 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 September 2025.

(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.

(e)

The initial maximum facility size of $450.0 million may be increased to $650.0 million, 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. Amounts reflect the outstanding balance as of September 30, 2017.

(g)

Facility carries a rolling 12 month term which may reset monthly with the lender’s consent. Current maturity is September 2018. This facility carries no maximum facility size. Amounts reflect the outstanding balance as of September 30, 2017.

(h)

The date that is 270 days after the buyer delivers notice to seller, subject to a maximum date of May 2018.

(i)

Subject to a 25 basis point floor.

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 nine months ended September 30, 2017, we entered into two mortgage loans with maximum borrowings of $38.3 million to finance commercial real estate previously acquired by our Investing and Servicing Segment. As of September 30, 2017, these facilities carry a remaining weighted average term of 4.6 years with floating annual interest rates of LIBOR + 2.00%.

In February 2017, we entered into a mortgage loan with maximum borrowings of $7.3 million as part of the Medical Office Portfolio Mortgages. This loan carries a five year initial term with two 12 month extension options and an annual interest rate of LIBOR + 2.50%.

In March 2017, we entered into a $125.0 million repurchase facility (“Lender 10 Repo 1”) to finance certain loans held-for-investment. The facility carries a three year initial term with two one-year extension options and an annual interest rate of LIBOR + 2.00% to 2.75%. In May 2017, we upsized the maximum facility size to $140.0 million utilizing an available accordion feature.

In March 2017, we amended the Lender 3 Repo 1 facility to extend the maturity from May 2017 to May 2018.

In June 2017, we entered into a $200.0 million repurchase facility (“Lender 11 Repo 1”) to finance certain mortgage loans held-for-sale. The facility carries a two year initial term with a one-year extension option and an initial annual interest rate of LIBOR + 2.75%.

In July 2017, we acquired a captive insurance entity that is a member of the Federal Home Loan Bank (“FHLB”) of Chicago. This membership, which expires in February 2021, provides us additional financing capacity from the FHLB of Chicago on qualifying collateral. The facility has an annual interest rate of LIBOR + 0.15% to 0.34% and expires in February 2021. As of September 30, 2017, the facility had outstanding borrowings of $250.0 million.

In September 2017, we entered into a $250.0 million repurchase facility (“Lender 11 Repo 2”) to finance certain loans held-for-investment. The facility carries a one year initial term with four one-year extension options and an annual interest rate of LIBOR + 2.25% to 2.75%.

In September 2017, we entered into two mortgage loans with total borrowings of $265.9 million (“Master Lease Portfolio Mortgages”) to finance the acquisition of the Master Lease Portfolio. The loans carry ten year terms and fixed annual interest rates of 4.36% and 4.38%, respectively.

In September 2017, we amended the Lender 6 Repo 1 facility to upsize available borrowings from $500.0 million to $600.0 million and extend the maturity from August 2019 to August 2020.

Our secured financing agreements contain certain financial tests and covenants. As of September 30, 2017, 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
2017 (remainder of)	$	781,261	$	14,461	$	795,722
2018		988,168		76,952		1,065,120
2019		395,715		1,355		397,070
2020		1,041,480		358,102		1,399,582
2021		2,289		565,815		568,104
Thereafter		82,611		1,247,511		1,330,122
Total	$	3,291,524	$	2,264,196	$	5,555,720

For the three and nine months ended September 30, 2017, approximately $5.0 million and $14.4 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed consolidated statements of operations. For the three and nine months ended September 30, 2016, approximately $3.9 million and $12.1 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 September 30, 2017 and December 31, 2016 (amounts in thousands):


Class of Collateral	September 30, 2017		December 31, 2016
Loans held-for-investment	$	2,692,642	$	1,890,925
Loans held-for-sale		144,520		34,024
Investment securities		454,362		551,328
	$	3,291,524	$	2,476,277

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 72% 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 15% 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.