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Fair Value of Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Fair Value Hierarchy of Assets and Liabilities Measured on a Recurring Basis
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
Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements
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.
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation Table
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.
Fair Value, Liabilities Measured on Recurring Basis
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
Fair Value Sensitivity of Loans
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
)
Fair Value Disclosure And Measurement
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
)
Fair Value, by Balance Sheet Grouping
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.