Securitizations Net

6 Months Ended

Jun. 30, 2022

Note 9 — Securitizations, Net

From May 2011 through June 2022, the Company completed twenty-three securitizations, issuing $4.9 billion of securities to third parties through twenty-three respective Trusts. The Company is the sole beneficial interest holder of the remaining Trusts, which are variable interest entities included in the consolidated financial statements. The transactions are accounted for as secured borrowings under U.S. GAAP. The securities are subject to redemption by the Company when the stated principal balance is less than a certain percentage, ranging from 5%–30% of the original stated principal balance of loans at issuance. As a result, the actual maturity dates of the securities issued could be earlier than their respective stated maturity dates, ranging from July 2045 through May 2052.

The following table summarizes the outstanding balance, net of discounts and deal costs, of the securities and the effective interest rate for the six months ended June 30, 2022 and 2021 ($ in thousands):


	Six Months Ended June 30,
Securitizations:	2022			2021
Securitizations, net	$	2,477,226		$	1,558,163
Interest expense		44,428			37,333
Average outstanding balance		2,175,263			1,545,969
Effective interest rate (1)		4.08	%		4.83	%

(1)

Represents annualized interest expense divided by average gross outstanding balance and includes average rate of 3.38% and debt issuance cost amortization of 0.70% and average rate of 4.12% and debt issuance cost amortization of 0.71% for the six months ended June 30, 2022 and 2021, respectively.