Fair Value of Assets and Liabilities

For a description of the fair value hierarchy and the Company’s fair value methodologies, see “Part II – Item 8 –Financial Statements and Supplementary Data – Note 2. Summary of Significant Accounting Policies” in the Annual Report on Form 10-K. The Company records certain assets and liabilities at fair value as listed in the following tables.

Financial Instruments, Assets and Liabilities Recorded at Fair Value

The following tables present the fair value hierarchy for assets and liabilities measured at fair value at June 30, 2018 and December 31, 2017:



June 30, 2018	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Loans held for investment	$	—	$	—	$	2,358,629	$	2,358,629
Loans held for investment by the Company	—		—		9,621		9,621
Loans held for sale by the Company	—		—		515,307		515,307
Securities available for sale:
Asset-backed senior securities related to Company-sponsored securitizations	—		64,987		—		64,987
Asset-backed subordinated residual certificates related to Company-sponsored securitizations and CLUB Certificate transactions	—		—		28,727		28,727
Corporate debt securities	—		17,746		—		17,746
Certificates of deposit	—		15,796		—		15,796
Asset-backed securities	—		13,075		—		13,075
Commercial paper	—		9,473		—		9,473
Total securities available for sale	—		121,077		28,727		149,804
Servicing assets	—		—		50,984		50,984
Total assets	$	—	$	121,077	$	2,963,268	$	3,084,345

Liabilities:
Notes, certificates and secured borrowings	$	—	$	—	$	2,377,080	$	2,377,080
Servicing liabilities	—		—		276		276
Loan trailing fee liability	—		—		9,388		9,388
Total liabilities	$	—	$	—	$	2,386,744	$	2,386,744



December 31, 2017	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Loans held for investment	$	—	$	—	$	2,932,325	$	2,932,325
Loans held for investment by the Company	—		—		361,230		361,230
Loans held for sale by the Company	—		—		235,825		235,825
Securities available for sale:
Asset-backed senior securities related to Company-sponsored securitizations	—		37,020		—		37,020
Certificates of deposit	—		24,758		—		24,758
Corporate debt securities	—		16,258		—		16,258
Asset-backed securities	—		14,843		—		14,843
Commercial paper	—		14,665		—		14,665
Asset-backed subordinated residual certificates related to Company-sponsored securitizations and CLUB Certificate transactions	—		—		10,029		10,029
Total securities available for sale	—		107,544		10,029		117,573
Servicing assets	—		—		33,676		33,676
Total assets	$	—	$	107,544	$	3,573,085	$	3,680,629

Liabilities:
Notes, certificates and secured borrowings	$	—	$	—	$	2,954,768	$	2,954,768
Payable to securitization residual certificate holders	—		—		1,479		1,479
Servicing liabilities	—		—		833		833
Loan trailing fee liability	—		—		8,432		8,432
Total liabilities	$	—	$	—	$	2,965,512	$	2,965,512

The Company has elected the fair value option for notes, certificates, and secured borrowings, payable to securitization residual certificate holders, and loan trailing fee liability. Beginning January 1, 2018, changes in the fair value of these financial liabilities caused by a change in the Company’s risk are reported in other comprehensive income (OCI). For the second quarter and first half of 2018, the amount reported in OCI is zero because these financial liabilities are either payable only upon receipt of cash flows from underlying loans or secured by cash collateral. See “Adoption of New Accounting Standards” in “Note 2. Summary of Significant Accounting Policies” for further discussion.

Financial instruments are categorized in the valuation hierarchy based on the significance of unobservable factors in the overall fair value measurement. Since the Company’s loans held for investment and related notes, certificates, and secured borrowings, loans held for sale, loan servicing rights, asset-backed securities related to consolidated VIEs, and loan trailing fee liability do not trade in an active market with readily observable prices, the Company uses significant unobservable inputs to measure the fair value of these assets and liabilities. These fair value estimates may also include observable, actively quoted components derived from external sources. As a result, changes in fair value for assets and liabilities within the Level 2 or Level 3 categories may include changes in fair value that were attributable to observable and unobservable inputs, respectively. The Company did not transfer any assets or liabilities in or out of Level 3 during the first half of 2018 or the year ended December 31, 2017.

Significant Unobservable Inputs

The Company primarily uses a discounted cash flow model to estimate the fair value of Level 3 instruments based on the present value of estimated future cash flows. This model uses inputs that are inherently judgmental and reflect our best estimates of the assumptions a market participant would use to calculate fair value. The following tables present quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements at June 30, 2018 and December 31, 2017:



	June 30, 2018
	Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings ⁽¹⁾						Asset-Backed Securities Related to Consolidated VIE
	Minimum		Maximum		Weighted Average		Minimum		Maximum		Weighted Average
Discount rates	3.6	%	16.6	%	9.7	%	3.2	%	15.0	%	7.4	%
Net cumulative expected loss rates⁽²⁾⁽⁴⁾	0.4	%	40.9	%	13.7	%	6.6	%	42.6	%	16.2	%
Cumulative expected prepayment rates ⁽²⁾⁽⁴⁾	11.3	%	49.1	%	31.3	%	24.8	%	34.0	%	30.0	%

	June 30, 2018
	Servicing Assets/Liabilities						Loan Trailing Fee Liability
	Minimum		Maximum		Weighted Average		Minimum		Maximum		Weighted Average
Discount rates	4.1	%	15.4	%	9.3	%	4.1	%	15.4	%	9.7	%
Net cumulative expected loss rates⁽²⁾	0.4	%	40.9	%	12.2	%	0.8	%	40.9	%	13.2	%
Cumulative expected prepayment rates ⁽²⁾	11.3	%	49.1	%	32.0	%	11.3	%	49.1	%	31.9	%
Total market servicing rates (% per annum on outstanding principal balance) ⁽³⁾	0.66	%	0.66	%	0.66	%	N/A		N/A		N/A

	December 31, 2017
	Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings ⁽¹⁾						Asset-Backed Securities Related to Consolidated VIE
	Minimum		Maximum		Weighted Average		Minimum		Maximum		Weighted Average
Discount rates	1.7	%	17.2	%	8.5	%	5.8	%	15.0	%	9.5	%
Net cumulative expected loss rates^{(2) (4)}	0.4	%	41.8	%	13.8	%	10.9	%	37.2	%	19.7	%
Cumulative expected prepayment rates ^{(2) (4)}	11.3	%	51.0	%	31.6	%	28.3	%	33.7	%	30.5	%

	December 31, 2017
	Servicing Assets/Liabilities						Loan Trailing Fee Liability
	Minimum		Maximum		Weighted Average		Minimum		Maximum		Weighted Average
Discount rates	1.9	%	17.1	%	8.8	%	1.9	%	17.1	%	8.9	%
Net cumulative expected loss rates⁽²⁾	0.4	%	41.8	%	12.4	%	0.8	%	41.8	%	13.2	%
Cumulative expected prepayment rates ⁽²⁾	11.3	%	51.0	%	31.7	%	11.3	%	51.0	%	31.4	%
Total market servicing rates (% per annum on outstanding principal balance) ⁽³⁾	0.66	%	0.90	%	0.66	%	N/A		N/A		N/A

N/A Not applicable


⁽¹⁾	Loans held for investment and loans held for sale include loans invested in by the Company.


⁽²⁾	Expressed as a percentage of the original principal balance of the loan, note or certificate, except for asset-backed securities.


⁽³⁾	Includes collection fees estimated to be paid to a hypothetical third-party servicer.


⁽⁴⁾	For asset-backed securities, expressed as a percentage of the outstanding collateral balance.

At June 30, 2018 and December 31, 2017, the discounted cash flow methodology used to estimate the note, certificate and secured borrowings’ fair values used the same projected net cash flows as their related loans. As demonstrated by the following tables, the fair value adjustments for loans held for investment and loans held for sale were largely offset by the fair value adjustments of the notes, certificates and secured borrowings due to the payment dependent design of the notes, certificates and secured borrowings and because the principal balances of the loans were close to the combined principal balances of the notes, certificates and secured borrowings.

The following tables present additional information about Level 3 loans held for investment, loans held for sale, and notes, certificates and secured borrowings measured at fair value on a recurring basis for the second quarters and first halves of 2018 and 2017:



	Loans Held For Investment									Loans Held For Sale									Notes, Certificates and Secured Borrowings
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Balance at March 31, 2018	$	2,829,765		$	(194,352	)	$	2,635,413		$	—		$	—		$	—		$	2,847,040		$	(191,623	)	$	2,655,417
Purchases	246,450			—			246,450			810,558			(1,546		)	809,012			—			—			—
Transfers (to) from loans held for investment (from) to loans held for sale	(1,181		)	(22,152		)	(23,333		)	1,181			22,152			23,333			—			—			—
Issuances	—			—			—			—			—			—			246,517			—			246,517
Sales	—			—			—			(811,739		)	773			(810,966		)	—			—			—
Principal payments and retirements	(452,718		)	—			(452,718		)	—			—			—			(455,571		)	86			(455,485		)
Charge-offs	(84,060		)	84,060			—			—			—			—			(84,060		)	84,060			—
Recoveries	—			(14,621		)	(14,621		)	—			—			—			—			(14,621		)	(14,621		)
Change in fair value recorded in earnings	—			(32,562		)	(32,562		)	—			(21,379		)	(21,379		)	—			(54,748		)	(54,748		)
Balance at June 30, 2018	$	2,538,256		$	(179,627	)	$	2,358,629		$	—		$	—		$	—		$	2,553,926		$	(176,846	)	$	2,377,080



	Loans Held For Investment									Loans Held For Sale									Notes and Certificates
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Balance at March 31, 2017	$	4,295,328		$	(283,945	)	$	4,011,383		$	—		$	—		$	—		$	4,318,302		$	(283,945	)	$	4,034,357
Purchases	472,630			1			472,631			1,544,595			6,424			1,551,019			—			—			—
Issuances	—			—			—			—			—			—			472,681			—			472,681
Sales	—			—			—			(1,544,595		)	(6,424		)	(1,551,019		)	—			—			—
Principal payments and retirements	(623,966		)	—			(623,966		)	—			—			—			(619,889		)	—			(619,889		)
Charge-offs	(122,376		)	122,376			—			—			—			—			(122,377		)	122,377			—
Recoveries	—			(11,703		)	(11,703		)	—			—			—			—			(11,703		)	(11,703		)
Change in fair value recorded in earnings	—			(69,864		)	(69,864		)	—			—			—			—			(69,864		)	(69,864		)
Balance at June 30, 2017	$	4,021,616		$	(243,135	)	$	3,778,481		$	—		$	—		$	—		$	4,048,717		$	(243,135	)	$	3,805,582



	Loans Held For Investment									Loans Held For Sale									Notes, Certificates and Secured Borrowings
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Balance at December 31, 2017	$	3,141,391		$	(209,066	)	$	2,932,325		$	—		$	—		$	—		$	3,161,080		$	(206,312	)	$	2,954,768
Purchases	538,564			9			538,573			1,943,835			(3,318		)	1,940,517			—			—			—
Transfers (to) from loans held for investment (from) to loans held for sale	(1,181		)	(22,152		)	(23,333		)	1,181			22,152			23,333			—			—			—
Issuances	—			—			—			—			—			—			538,978			—			538,978
Sales	—			—			—			(1,945,016		)	1,608			(1,943,408		)	—			—			—
Principal payments and retirements	(953,667		)	—			(953,667		)	—			—			—			(959,281		)	94			(959,187		)
Charge-offs	(186,851		)	186,851			—			—			—			—			(186,851		)	186,851			—
Recoveries	—			(32,080		)	(32,080		)	—			—			—			—			(32,080		)	(32,080		)
Change in fair value recorded in earnings	—			(103,189		)	(103,189		)	—			(20,442		)	(20,442		)	—			(125,399		)	(125,399		)
Balance at June 30, 2018	$	2,538,256		$	(179,627	)	$	2,358,629		$	—		$	—		$	—		$	2,553,926		$	(176,846	)	$	2,377,080



	Loans Held For Investment									Loans Held For Sale									Notes and Certificates
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Balance at December 31, 2016	$	4,547,138		$	(252,017	)	$	4,295,121		$	—		$	—		$	—		$	4,572,912		$	(252,017	)	$	4,320,895
Purchases	995,865			3			995,868			2,714,802			6,424			2,721,226			—			—			—
Issuances	—			—			—			—			—			—			995,986			—			995,986
Sales	—			—			—			(2,714,802		)	(6,424		)	(2,721,226		)	—			—			—
Principal payments and retirements	(1,262,201		)	—			(1,262,201		)	—			—			—			(1,260,994		)	2			(1,260,992		)
Charge-offs	(259,186		)	259,186			—			—			—			—			(259,187		)	259,187			—
Recoveries	—			(22,493		)	(22,493		)	—			—			—			—			(22,493		)	(22,493		)
Change in fair value recorded in earnings	—			(227,814		)	(227,814		)	—			—			—			—			(227,814		)	(227,814		)
Balance at June 30, 2017	$	4,021,616		$	(243,135	)	$	3,778,481		$	—		$	—		$	—		$	4,048,717		$	(243,135	)	$	3,805,582

The following tables present additional information about Level 3 loans invested in by the Company measured at fair value on a recurring basis for the second quarters and first halves of 2018 and 2017:



	Loans Held For Investment by the Company									Loans Held For Sale by the Company									Total Loans Invested in by the Company
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Balance at March 31, 2018	$	339,615		$	(22,157	)	$	317,458		$	258,477		$	(10,133	)	$	248,344		$	598,092		$	(32,290	)	$	565,802
Purchases	1,665			(269		)	1,396			1,191,406			(1,852		)	1,189,554			1,193,071			(2,121		)	1,190,950
Transfers (to) from loans held for investment (from) to loans held for sale	(316,445		)	22,152			(294,293		)	316,445			(22,152		)	294,293			—			—			—
Sales	—			—			—			(1,182,533		)	34,831			(1,147,702		)	(1,182,533		)	34,831			(1,147,702		)
Principal payments and retirements	(12,120		)	—			(12,120		)	(45,281		)	—			(45,281		)	(57,401		)	—			(57,401		)
Charge-offs	(1,954		)	1,954			—			(2,604		)	2,604			—			(4,558		)	4,558			—
Recoveries	—			(168		)	(168		)	—			(12		)	(12		)	—			(180		)	(180		)
Change in fair value recorded in earnings	—			(2,652		)	(2,652		)	—			(23,889		)	(23,889		)	—			(26,541		)	(26,541		)
Balance at June 30, 2018	$	10,761		$	(1,140	)	$	9,621		$	535,910		$	(20,603	)	$	515,307		$	546,671		$	(21,743	)	$	524,928



	Loans Held For Investment by the Company									Loans Held For Sale by the Company									Total Loans Invested in by the Company
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Balance at March 31, 2017	$	16,924		$	(1,552	)	$	15,372		$	9,724		$	(315	)	$	9,409		$	26,648		$	(1,867	)	$	24,781
Purchases	5,620			(2		)	5,618			177,660			—			177,660			183,280			(2		)	183,278
Sales	—			—			—			(142,355		)	737			(141,618		)	(142,355		)	737			(141,618		)
Principal payments and retirements	(1,778		)	—			(1,778		)	(7,541		)	—			(7,541		)	(9,319		)	—			(9,319		)
Charge-offs	(832		)	832			—			(201		)	201			—			(1,033		)	1,033			—
Recoveries	—			(102		)	(102		)	—			—			—			—			(102		)	(102		)
Change in fair value recorded in earnings	—			(592		)	(592		)	—			(1,579		)	(1,579		)	—			(2,171		)	(2,171		)
Balance at June 30, 2017	$	19,934		$	(1,416	)	$	18,518		$	37,287		$	(956	)	$	36,331		$	57,221		$	(2,372	)	$	54,849



	Loans Held For Investment by the Company									Loans Held For Sale by the Company									Total Loans Invested in by the Company
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Balance at December 31, 2017	$	371,379		$	(10,149	)	$	361,230		$	242,273		$	(6,448	)	$	235,825		$	613,652		$	(16,597	)	$	597,055
Purchases	3,161			(429		)	2,732			1,983,081			(2,132		)	1,980,949			1,986,242			(2,561		)	1,983,681
Transfers (to) from loans held for investment (from) to loans held for sale	(316,339		)	22,152			(294,187		)	316,339			(22,152		)	294,187			—			—			—
Sales	—			—			—			(1,925,265		)	44,879			(1,880,386		)	(1,925,265		)	44,879			(1,880,386		)
Principal payments and retirements	(44,314		)	—			(44,314		)	(75,699		)	—			(75,699		)	(120,013		)	—			(120,013		)
Charge-offs	(3,126		)	3,126			—			(4,819		)	4,819			—			(7,945		)	7,945			—
Recoveries	—			(367		)	(367		)	—			(24		)	(24		)	—			(391		)	(391		)
Change in fair value recorded in earnings	—			(15,473		)	(15,473		)	—			(39,545		)	(39,545		)	—			(55,018		)	(55,018		)
Balance at June 30, 2018	$	10,761		$	(1,140	)	$	9,621		$	535,910		$	(20,603	)	$	515,307		$	546,671		$	(21,743	)	$	524,928



	Loans Held For Investment by the Company									Loans Held For Sale by the Company									Total Loans Invested in by the Company
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Balance at December 31, 2016	$	18,515		$	(1,652	)	$	16,863		$	9,345		$	(297	)	$	9,048		$	27,860		$	(1,949	)	$	25,911
Purchases	6,801			(8		)	6,793			183,608			(1		)	183,607			190,409			(9		)	190,400
Issuances	—			—			—			—			—			—			—			—			—
Sales	—			—			—			(146,584		)	894			(145,690		)	(146,584		)	894			(145,690		)
Principal payments and retirements	(3,262		)	—			(3,262		)	(8,721		)	—			(8,721		)	(11,983		)	—			(11,983		)
Charge-offs	(2,120		)	2,120			—			(361		)	361			—			(2,481		)	2,481			—
Recoveries	—			(201		)	(201		)	—			—			—			—			(201		)	(201		)
Change in fair value recorded in earnings	—			(1,675		)	(1,675		)	—			(1,913		)	(1,913		)	—			(3,588		)	(3,588		)
Balance at June 30, 2017	$	19,934		$	(1,416	)	$	18,518		$	37,287		$	(956	)	$	36,331		$	57,221		$	(2,372	)	$	54,849

The following tables present additional information about Level 3 Asset-backed subordinated residual certificates related to Company-sponsored securitization and CLUB Certificate transactions measured at fair value on a recurring basis for the second quarters and first halves of 2018 and 2017:



	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
Fair value at beginning of period	$	20,129		$	—	$	10,029		$	—
Additions	13,297			3,567		24,805			3,567
Redemptions	(2,325		)	—		(2,325		)
Cash received	(1,114		)	—		(1,287		)	—
Change in unrealized gain (loss)	(459		)	—		(371		)	—
Other than temporary impairment	(801		)	—		(2,124		)	—
Fair value at end of period	$	28,727		$	3,567	$	28,727		$	3,567

The following tables present additional information about Level 3 servicing assets and liabilities measured at fair value on a recurring basis for the second quarters and first halves of 2018 and 2017:



	Three Months Ended June 30, 2018						Three Months Ended June 30, 2017
	Servicing Assets			Servicing Liabilities			Servicing Assets			Servicing Liabilities
Fair value at beginning of period	$	40,884		$	475		$	22,360		$	2,311
Issuances ⁽¹⁾	16,188			—			8,580			39
Change in fair value, included in investor fees	(7,453		)	(199		)	(5,075		)	(639		)
Other net changes included in deferred revenue	1,365			—			36			—
Fair value at end of period	$	50,984		$	276		$	25,901		$	1,711



	Six Months Ended June 30, 2018						Six Months Ended June 30, 2017
	Servicing Assets			Servicing Liabilities			Servicing Assets			Servicing Liabilities
Fair value at beginning of period	$	33,676		$	833		$	21,398		$	2,846
Issuances ⁽¹⁾	28,168			—			13,897			313
Change in fair value, included in investor fees	(13,059		)	(557		)	(9,122		)	(1,448		)
Other net changes included in deferred revenue	2,199			—			(272		)	—
Fair value at end of period	$	50,984		$	276		$	25,901		$	1,711


⁽¹⁾	Represents the gains or losses on sales of the related loans, recorded in other revenue.

The following table presents additional information about Level 3 loan trailing fee liability measured at fair value on a recurring basis for the second quarters and first halves of 2018 and 2017:



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Fair value at beginning of period	$	8,824		$	5,814		$	8,432		$	4,913
Issuances	2,069			1,811			3,844			3,474
Cash payment of loan trailing fee	(1,651		)	(998		)	(3,205		)	(1,824		)
Change in fair value, included in origination and servicing	146			161			317			225
Fair value at end of period	$	9,388		$	6,788		$	9,388		$	6,788

Significant Recurring Level 3 Fair Value Asset and Liability Input Sensitivity

Fair valuation adjustments are recorded through earnings related to Level 3 instruments for the second quarters and first halves of 2018 and 2017. Certain unobservable inputs may (in isolation) have either a directionally consistent or opposite impact on the fair value of the financial instrument for a given change in that input. When multiple inputs are used within the valuation techniques for loans, notes, certificates and secured borrowings, servicing assets and liabilities, and loan trailing fee liability, a change in one input in a certain direction may be offset by an opposite change from another input.

A specific loan that is projected to have larger future default losses than previously estimated has lower expected future cash flows over its remaining life, which reduces its estimated fair value. Conversely, a specific loan that is projected to have smaller future default losses than previously estimated has increased expected future cash flows over its remaining life, which increases its estimated fair value.

The fair value sensitivity of loans invested in by the Company to adverse changes in key assumptions as of June 30, 2018 and December 31, 2017 are as follows:



	June 30, 2018			December 31, 2017
Fair value of loans invested in by the Company	$	524,928		$	597,055
Expected weighted-average life (in years)	1.5			1.5
Discount rates
100 basis point increase	$	(6,132	)	$	(7,449	)
200 basis point increase	$	(12,121	)	$	(14,715	)
Expected credit loss rates on underlying loans
10% adverse change	$	(8,334	)	$	(10,090	)
20% adverse change	$	(16,581	)	$	(18,935	)
Expected prepayment rates
10% adverse change	$	(2,021	)	$	(3,548	)
20% adverse change	$	(3,969	)	$	(5,894	)

The Company’s selection of the most representative market servicing rates for servicing assets and servicing liabilities is inherently judgmental. The Company reviews third-party servicing rates for its loans, loans in similar credit sectors, and market servicing benchmarking analyses provided by third-party valuation firms, when available. The table below shows the impact on the estimated fair value of servicing assets and liabilities, calculated using different market servicing rate assumptions as of June 30, 2018 and December 31, 2017:



	June 30, 2018						December 31, 2017
	Servicing Assets			Servicing Liabilities			Servicing Assets			Servicing Liabilities
Weighted-average market servicing rate assumptions	0.66		%	0.66		%	0.66		%	0.66		%
Change in fair value from:
Servicing rate increase by 0.10%	$	(9,431	)	$	101		$	(7,749	)	$	233
Servicing rate decrease by 0.10%	$	9,437		$	(95	)	$	7,760		$	(222	)

Financial Instruments, Assets, and Liabilities Not Recorded at Fair Value

The following tables present the fair value hierarchy for financial instruments, assets, and liabilities not recorded at fair value at June 30, 2018 and December 31, 2017:



June 30, 2018	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Cash and cash equivalents ⁽¹⁾	$	434,179	$	—	$	434,179	$	—	$	434,179
Restricted cash	221,688		—		221,688		—		221,688
Servicer reserve receivable	1,343		—		1,343		—		1,343
Deposits	860		—		860		—		860
Total assets	$	658,070	$	—	$	658,070	$	—	$	658,070
Liabilities:
Accrued expenses and other liabilities	$	15,633	$	—	$	—	$	15,633	$	15,633
Accounts payable	13,840		—		13,840		—		13,840
Payables to investors	111,003		—		111,003		—		111,003
Payable to credit facilities	349,232		—		—		349,232		349,232
Total liabilities	$	489,708	$	—	$	124,843	$	364,865	$	489,708


⁽¹⁾	Carrying amount approximates fair value due to the short maturity of these financial instruments.



December 31, 2017	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Cash and cash equivalents ⁽¹⁾	$	401,719	$	—	$	401,719	$	—	$	401,719
Restricted cash	242,570		—		242,570		—		242,570
Servicer reserve receivable	13,685		—		13,685		—		13,685
Deposits	855		—		855		—		855
Total assets	$	658,829	$	—	$	658,829	$	—	$	658,829
Liabilities:
Accrued expenses and other liabilities	$	13,856	$	—	$	—	$	13,856	$	13,856
Accounts payable	11,151		—		11,151		—		11,151
Payables to investors	143,310		—		143,310		—		143,310
Payable to securitization note holders	310,644		—		310,644		—		310,644
Payable to revolving credit facilities	32,100		—		—		32,100		32,100
Total liabilities	$	511,061	$	—	$	465,105	$	45,956	$	511,061


⁽¹⁾	Carrying amount approximates fair value due to the short maturity of these financial instruments.