Company: AFRM
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001820953-25-000052
Chunk: 40

Company: Affirm Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 management considers both qualitative and quantitative factors regarding the nature, size and form of our involvement with the VIEs. We perform reassessments an ongoing basis to evaluate whether we are the primary beneficiary of the VIEs. Where we consolidate the securitization trusts, the loans held in the securitization trusts are included in loans held for investment, and the notes sold to third-party investors are recorded in notes issued by securitization trusts in the interim condensed consolidated balance sheets.For each securitization, the residual trust certificates represent the right to receive excess cash on the loans each collection period after all fees and required distributions have been made to the note holders on the related payment date. In addition to the retained residual trust certificates, our continued involvement includes loan servicing responsibilities over the life of the underlying loans. We defer and amortize debt issuance costs for consolidated securitization trusts on a straight-line basis over the expected life of the notes.

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The following tables present the aggregate carrying value of financial assets and liabilities from our involvement with consolidated VIEs (in thousands): March 31, 2025AssetsLiabilitiesNet AssetsWarehouse credit facilities$2,044,461 $1,831,884 $212,577 Securitizations (1)4,196,423 4,146,394 50,029 Total consolidated VIEs$6,240,884 $5,978,278 $262,606 June 30, 2024AssetsLiabilitiesNet AssetsWarehouse credit facilities$2,052,881 $1,823,794 $229,087 Securitizations3,325,254 3,246,228 79,026 Total consolidated VIEs$5,378,135 $5,070,022 $308,113 (1)As of March 31, 2025, liabilities include $47.8 million of VFN classified as funding debt and $4.1 billion of asset-backed notes classified as notes issued from securitization trusts.Unconsolidated VIEsOur transactions with unconsolidated VIEs include securitization trusts where we did not retain significant economic exposure through our variable interests and therefore we determined that we are not the primary beneficiary as of March 31, 2025.The following information pertains to unconsolidated VIEs where we hold a variable interest but are not the primary beneficiary (in thousands):March