6. VIE and Other Finance Receivables, at Fair Market Value

The Company has elected to fair value newly originated guaranteed structured settlements in accordance with ASC 810. Additionally, as a result of the Company including lottery winning finance receivables in its 2013-1 asset securitization, the Company also elected to fair value newly originated lottery winnings effective January 1, 2013. As of March 31, 2014 and December 31, 2013, VIE and other finance receivables for which the fair value option was elected consist of the following:

	March 31, 2014			December 31, 2013
	(Dollars in thousands)
Maturity value	$	6,054,437		$	5,917,596
Unearned income	(1,994,305		)	(2,046,947		)
Net carrying amount	$	4,060,132		$	3,870,649

Encumbrances on VIE and other finance receivables, at fair market value are as follows:

Encumbrance	March 31, 2014		December 31, 2013
	(Dollars in thousands)
VIE securitization debt (2)	$	3,916,681	$	3,742,218
$100 million credit facility (1)	21,305		11,073
$300 million credit facility (1)	12,424		16,681
$300 million credit facility (1)	20,556		7,568
$100 million permanent financing related to 2011-A (2)	47,019		41,164
Total VIE finance receivables at fair value	4,017,985		3,818,704
Not encumbered	42,147		51,945
Total VIE and other finance receivables at fair value	$	4,060,132	$	3,870,649

(1) See Note 8

(2) See Note 10

Notes receivable, at fair market value and residual cash flows from finance receivables, at fair market value held in securitizations are pledged as collateral for the residual term facility debt (Note 9) as of March 31, 2014 and December 31, 2013.

The Company is engaged to service certain finance receivables it sells to third parties. Servicing fee revenue related to those receivables are included in servicing, broker, and other fees in the Company’s unaudited condensed consolidated statements of operations, and for the three months ended March 31, 2014 and 2013, were as follows:

	Three Months Ended March 31,
	2014		2013
	(Dollars in thousands)
Servicing fees	$	231	$	241