Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

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 September 30, 2018 and December 31, 2017:



September 30, 2018	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Loans held for investment	$	—	$	—	$	2,133,829	$	2,133,829
Loans held for investment by the Company	—		—		12,198		12,198
Loans held for sale by the Company	—		—		459,283		459,283
Securities available for sale:
Securitized asset-backed senior securities and subordinated residual certificates	—		67,055		13,578		80,633
CLUB Certificate asset-backed securities	—		—		29,046		29,046
Certificates of deposit	—		22,446		—		22,446
Asset-backed securities	—		12,036		—		12,036
Corporate debt securities	—		11,690		—		11,690
Commercial paper	—		9,093		—		9,093
Other securities	—		498		—		498
Total securities available for sale	—		122,818		42,624		165,442
Servicing assets	—		—		60,160		60,160
Total assets	$	—	$	122,818	$	2,708,094	$	2,830,912

Liabilities:
Notes, certificates and secured borrowings	$	—	$	—	$	2,152,316	$	2,152,316
Loan trailing fee liability	—		—		9,856		9,856
Servicing liabilities	—		—		156		156
Total liabilities	$	—	$	—	$	2,162,328	$	2,162,328



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:
Securitized asset-backed senior securities and subordinated residual certificates	—		37,020		8,236		45,256
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
CLUB Certificate asset-backed securities	—		—		1,793		1,793
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
Loan trailing fee liability	—		—		8,432		8,432
Servicing liabilities	—		—		833		833
Total liabilities	$	—	$	—	$	2,965,512	$	2,965,512

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 September 30, 2018 and December 31, 2017:



	September 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%	$	(10,511	)	$	65		$	(7,749	)	$	233
Servicing rate decrease by 0.10%	$	10,519		$	(57	)	$	7,760		$	(222	)

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 third quarters and first nine months of 2018 and 2017:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Fair value at beginning of period	$	9,388		$	6,788		$	8,432		$	4,913
Issuances	1,994			2,047			5,838			5,521
Cash payment of Loan Trailing Fee	(1,769		)	(1,184		)	(4,974		)	(3,008		)
Change in fair value, included in Origination and Servicing	243			123			560			348
Fair value at end of period	$	9,856		$	7,774		$	9,856		$	7,774

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 September 30, 2018 and December 31, 2017:



September 30, 2018	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Cash and cash equivalents ⁽¹⁾	$	348,018	$	—	$	348,018	$	—	$	348,018
Restricted cash ⁽¹⁾	203,258		—		203,258		—		203,258
Servicer reserve receivable	968		—		968		—		968
Deposits	860		—		860		—		860
Total assets	$	553,104	$	—	$	553,104	$	—	$	553,104
Liabilities:
Accrued expenses and other liabilities	$	17,226	$	—	$	—	$	17,226	$	17,226
Accounts payable	8,778		—		8,778		—		8,778
Payables to investors	96,767		—		96,767		—		96,767
Credit facilities and securities sold under repurchase agreements	305,336		—		24,584		280,752		305,336
Total liabilities	$	428,107	$	—	$	130,129	$	297,978	$	428,107


⁽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 ⁽¹⁾	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.

Asset-backed Securities Related to Structured Program Transactions

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

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 for asset-backed securities related to structured program transactions at September 30, 2018 and December 31, 2017:



	Asset-Backed Securities Related to Structured Program Transactions
	September 30, 2018						December 31, 2017
	Minimum		Maximum		Weighted Average		Minimum		Maximum		Weighted Average
Discount rates	3.2	%	15.0	%	7.8	%	5.8	%	15.0	%	9.5	%
Net cumulative expected loss rates⁽¹⁾	6.6	%	43.7	%	17.0	%	10.9	%	37.2	%	19.7	%
Cumulative expected prepayment rates ⁽¹⁾	24.4	%	32.5	%	30.2	%	28.3	%	33.7	%	30.5	%


⁽¹⁾	Expressed as a percentage of the outstanding collateral balance.

Fair Value Sensitivity of Loans

The following tables provide adverse changes to the fair value sensitivity of asset-backed securities related to structured program transactions to changes in key assumptions at September 30, 2018 and December 31, 2017:



	September 30, 2018
	Asset-Backed Securities Related to Structured Program Transactions
	Senior Securities			Subordinated Residual Certificates			CLUB Certificates
Fair value of interests held	$	67,055		$	13,578		$	29,046
Expected weighted-average life (in years)	1.0			1.6			1.1
Discount rates
100 basis point increase	$	(696	)	$	(167	)	$	(293	)
200 basis point increase	$	(1,374	)	$	(330	)	$	(579	)
Expected credit loss rates on underlying loans
10% adverse change	$	—		$	(1,702	)	$	(550	)
20% adverse change	$	—		$	(3,403	)	$	(1,089	)
Expected prepayment rates
10% adverse change	$	—		$	(640	)	$	(169	)
20% adverse change	$	—		$	(1,274	)	$	(328	)



	December 31, 2017
	Asset-Backed Securities Related to Structured Program Transactions
	Senior Securities			Subordinated Residual Certificates			CLUB Certificates
Fair value of interests held	$	37,020		$	8,236		$	1,793
Expected weighted-average life (in years)	1.0			1.5			1.4
Discount rates
100 basis point increase	$	(326	)	$	(105	)	$	(41	)
200 basis point increase	$	(644	)	$	(208	)	$	(76	)
Expected credit loss rates on underlying loans
10% adverse change	$	(1	)	$	(1,060	)	$	(15	)
20% adverse change	$	(2	)	$	(2,118	)	$	(25	)
Expected prepayment rates
10% adverse change	$	(1	)	$	(265	)	$	(21	)
20% adverse change	$	(3	)	$	(513	)	$	(42	)

Loans Invested in by Company

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

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 for loans invested in by the Company at September 30, 2018 and December 31, 2017:



	Loans Invested in by the Company
	September 30, 2018						December 31, 2017
	Minimum		Maximum		Weighted Average		Minimum		Maximum		Weighted Average
Discount rates	0.9	%	17.2	%	10.1	%	1.7	%	17.2	%	9.3	%
Net cumulative expected loss rates⁽¹⁾	1.9	%	42.1	%	15.0	%	0.8	%	41.8	%	14.3	%
Cumulative expected prepayment rates ⁽¹⁾	11.3	%	46.0	%	32.7	%	11.3	%	46.0	%	33.3	%


⁽¹⁾	Expressed as a percentage of the original principal balance of the loan.

Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation Table

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 third quarters and first nine months 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 June 30, 2018	$	10,761		$	(1,140	)	$	9,621		$	535,910		$	(20,603	)	$	515,307		$	546,671		$	(21,743	)	$	524,928
Purchases	1,521			(256		)	1,265			1,189,737			(602		)	1,189,135			1,191,258			(858		)	1,190,400
Transfers (to) from loans held for investment (from) to loans held for sale	3,011			—			3,011			(3,011		)	—			(3,011		)	—			—			—
Sales	—			—			—			(1,193,980		)	17,598			(1,176,382		)	(1,193,980		)	17,598			(1,176,382		)
Principal payments and retirements	(1,456		)	—			(1,456		)	(45,265		)	—			(45,265		)	(46,721		)	—			(46,721		)
Charge-offs, net of recoveries	(541		)	303			(238		)	(4,075		)	4,048			(27		)	(4,616		)	4,351			(265		)
Change in fair value recorded in earnings	—			(5		)	(5		)	—			(20,474		)	(20,474		)	—			(20,479		)	(20,479		)
Balance at September 30, 2018	$	13,296		$	(1,098	)	$	12,198		$	479,316		$	(20,033	)	$	459,283		$	492,612		$	(21,131	)	$	471,481



	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 June 30, 2017	$	19,934		$	(1,416	)	$	18,518		$	37,287		$	(956	)	$	36,331		$	57,221		$	(2,372	)	$	54,849
Purchases	13,666			(470		)	13,196			573,042			(2		)	573,040			586,708			(472		)	586,236
Transfers (to) from loans held for investment (from) to loans held for sale	(16,138		)	—			(16,138		)	16,138			—			16,138			—			—			—
Sales	—			—			—			(429,481		)	1,740			(427,741		)	(429,481		)	1,740			(427,741		)
Principal payments and retirements	(2,567		)	—			(2,567		)	(16,153		)	—			(16,153		)	(18,720		)	—			(18,720		)
Charge-offs, net of recoveries	(1,004		)	949			(55		)	(534		)	534			—			(1,538		)	1,483			(55		)
Change in fair value recorded in earnings	—			(551		)	(551		)	—			(7,224		)	(7,224		)	—			(7,775		)	(7,775		)
Balance at September 30, 2017	$	13,891		$	(1,488	)	$	12,403		$	180,299		$	(5,908	)	$	174,391		$	194,190		$	(7,396	)	$	186,794



	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	4,682			(685		)	3,997			3,172,818			(2,734		)	3,170,084			3,177,500			(3,419		)	3,174,081
Transfers (to) from loans held for investment (from) to loans held for sale	(313,328		)	22,152			(291,176		)	313,328			(22,152		)	291,176			—			—			—
Sales	—			—			—			(3,119,245		)	62,477			(3,056,768		)	(3,119,245		)	62,477			(3,056,768		)
Principal payments and retirements	(45,770		)	—			(45,770		)	(120,964		)	—			(120,964		)	(166,734		)	—			(166,734		)
Charge-offs, net of recoveries	(3,667		)	3,062			(605		)	(8,894		)	8,843			(51		)	(12,561		)	11,905			(656		)
Change in fair value recorded in earnings	—			(15,478		)	(15,478		)	—			(60,019		)	(60,019		)	—			(75,497		)	(75,497		)
Balance at September 30, 2018	$	13,296		$	(1,098	)	$	12,198		$	479,316		$	(20,033	)	$	459,283		$	492,612		$	(21,131	)	$	471,481



	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	20,467			(478		)	19,989			756,650			(3		)	756,647			777,117			(481		)	776,636
Transfers (to) from loans held for investment (from) to loans held for sale	(16,138		)	—			(16,138		)	16,138			—			16,138			—			—			—
Sales	—			—			—			(576,065		)	2,634			(573,431		)	(576,065		)	2,634			(573,431		)
Principal payments and retirements	(5,829		)	—			(5,829		)	(24,874		)	—			(24,874		)	(30,703		)	—			(30,703		)
Charge-offs, net of recoveries	(3,124		)	2,868			(256		)	(895		)	895			—			(4,019		)	3,763			(256		)
Change in fair value recorded in earnings	—			(2,226		)	(2,226		)	—			(9,137		)	(9,137		)	—			(11,363		)	(11,363		)
Balance at September 30, 2017	$	13,891		$	(1,488	)	$	12,403		$	180,299		$	(5,908	)	$	174,391		$	194,190		$	(7,396	)	$	186,794

Fair Value Sensitivity of Loans

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



	September 30, 2018			December 31, 2017
Fair value of loans invested in by the Company	$	471,481		$	597,055
Expected weighted-average life (in years)	1.5			1.5
Discount rates
100 basis point increase	$	(5,618	)	$	(7,449	)
200 basis point increase	$	(11,103	)	$	(14,715	)
Expected credit loss rates on underlying loans
10% adverse change	$	(7,066	)	$	(10,090	)
20% adverse change	$	(13,980	)	$	(18,935	)
Expected prepayment rates
10% adverse change	$	(1,863	)	$	(3,548	)
20% adverse change	$	(3,634	)	$	(5,894	)

Servicing Assets and Servicing Liabilities

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

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 for servicing assets and servicing liabilities at September 30, 2018 and December 31, 2017:



	Servicing Assets and Servicing Liabilities
	September 30, 2018						December 31, 2017
	Minimum		Maximum		Weighted Average		Minimum		Maximum		Weighted Average
Discount rates	4.0	%	15.6	%	9.1	%	1.9	%	17.1	%	8.8	%
Net cumulative expected loss rates⁽¹⁾	0.4	%	42.1	%	12.2	%	0.4	%	41.8	%	12.4	%
Cumulative expected prepayment rates ⁽¹⁾	11.3	%	46.1	%	32.2	%	11.3	%	51.0	%	31.7	%
Total market servicing rates (% per annum on outstanding principal balance) ⁽²⁾	0.66	%	0.66	%	0.66	%	0.66	%	0.90	%	0.66	%


⁽¹⁾	Expressed as a percentage of the original principal balance of the loan.


⁽²⁾	Includes collection fees estimated to be paid to a hypothetical third-party servicer.

Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation Table

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 third quarters and first nine months of 2018 and 2017:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Fair value at beginning of period	$	28,727		$	3,567		$	10,029		$	—
Additions	16,836			2,372			41,641			5,939
Redemptions	(417		)	—			(2,742		)	—
Cash received	(3,075		)	—			(4,362		)	—
Change in unrealized gain (loss)	718			(31		)	347			(31		)
Other-than-temporary impairment	(165		)	(505		)	(2,289		)	(505		)
Fair value at end of period	$	42,624		$	5,403		$	42,624		$	5,403

Servicing Assets and Servicing Liabilities

Significant Unobservable Inputs



	Servicing Assets and Servicing Liabilities
	September 30, 2018						December 31, 2017
	Minimum		Maximum		Weighted Average		Minimum		Maximum		Weighted Average
Discount rates	4.0	%	15.6	%	9.1	%	1.9	%	17.1	%	8.8	%
Net cumulative expected loss rates⁽¹⁾	0.4	%	42.1	%	12.2	%	0.4	%	41.8	%	12.4	%
Cumulative expected prepayment rates ⁽¹⁾	11.3	%	46.1	%	32.2	%	11.3	%	51.0	%	31.7	%
Total market servicing rates (% per annum on outstanding principal balance) ⁽²⁾	0.66	%	0.66	%	0.66	%	0.66	%	0.90	%	0.66	%


⁽¹⁾	Expressed as a percentage of the original principal balance of the loan.


⁽²⁾	Includes collection fees estimated to be paid to a hypothetical third-party servicer.

Significant Recurring Level 3 Fair Value Input Sensitivity

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 September 30, 2018 and December 31, 2017:



	September 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%	$	(10,511	)	$	65		$	(7,749	)	$	233
Servicing rate decrease by 0.10%	$	10,519		$	(57	)	$	7,760		$	(222	)

Fair Value Reconciliation

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



	Three Months Ended September 30, 2018						Three Months Ended September 30, 2017
	Servicing Assets			Servicing Liabilities			Servicing Assets			Servicing Liabilities
Fair value at beginning of period	$	50,984		$	276		$	25,901		$	1,711
Issuances ⁽¹⁾	16,308			—			10,563			19
Change in fair value, included in investor fees	(9,194		)	(120		)	(6,961		)	(499		)
Other net changes included in deferred revenue	2,062			—			118			—
Fair value at end of period	$	60,160		$	156		$	29,621		$	1,231



	Nine Months Ended September 30, 2018						Nine Months Ended September 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⁾	44,476			—			24,460			332
Change in fair value, included in investor fees	(22,253		)	(677		)	(16,083		)	(1,947		)
Other net changes included in deferred revenue	4,261			—			(154		)	—
Fair value at end of period	$	60,160		$	156		$	29,621		$	1,231


⁽¹⁾	Represents the gains or losses on sales of the related loans.

Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

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 for loans held for investment, notes, certificates and secured

borrowings at September 30, 2018 and December 31, 2017:



	Loans Held for Investment, Notes, Certificates and Secured Borrowings
	September 30, 2018						December 31, 2017
	Minimum		Maximum		Weighted Average		Minimum		Maximum		Weighted Average
Discount rates	3.3	%	17.2	%	9.2	%	2.9	%	17.2	%	8.4	%
Net cumulative expected loss rates⁽¹⁾	0.4	%	42.1	%	12.8	%	0.4	%	41.8	%	13.7	%
Cumulative expected prepayment rates ⁽¹⁾	21.3	%	46.1	%	31.0	%	13.5	%	51.0	%	31.3	%


⁽¹⁾	Expressed as a percentage of the original principal balance of the loan, note or certificate.

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, notes, certificates and secured borrowings measured at fair value on a recurring basis for the third quarters and first nine months 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 June 30, 2018	$	2,538,256		$	(179,627	)	$	2,358,629		$	—		$	—		$	—		$	2,553,926		$	(176,846	)	$	2,377,080
Purchases	236,354			8			236,362			680,191			—			680,191			—			—			—
Issuances	—			—			—			—			—			—			236,463			—			236,463
Sales	—			—			—			(680,191		)	(981		)	(681,172		)	—			—			—
Principal payments and retirements	(419,933		)	—			(419,933		)	—			—			—			(419,898		)	7			(419,891		)
Charge-offs, net of recoveries	(69,833		)	53,054			(16,779		)	—			—			—			(69,832		)	53,054			(16,778		)
Change in fair value recorded in earnings	—			(24,450		)	(24,450		)	—			981			981			—			(24,558		)	(24,558		)
Balance at September 30, 2018	$	2,284,844		$	(151,015	)	$	2,133,829		$	—		$	—		$	—		$	2,300,659		$	(148,343	)	$	2,152,316



	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 June 30, 2017	$	4,021,616		$	(243,135	)	$	3,778,481		$	—		$	—		$	—		$	4,048,717		$	(243,135	)	$	3,805,582
Purchases	391,806			1			391,807			1,358,046			(2,134		)	1,355,912			—			—			—
Transfers (to) from loans held for investment (from) to loans held for sale	(97,449		)	—			(97,449		)	97,449			—			97,449			—			—			—
Issuances	—			—			—			—			—			—			394,013			—			394,013
Sales	—			—			—			(1,358,046		)	2,134			(1,355,912		)	—			—			—
Principal payments and retirements	(594,737		)	—			(594,737		)	(557		)	—			(557		)	(602,051		)	2			(602,049		)
Charge-offs and recoveries	(115,066		)	103,007			(12,059		)	—			—			—			(115,064		)	103,007			(12,057		)
Change in fair value recorded in earnings	—			(64,553		)	(64,553		)	—			(5,358		)	(5,358		)	—			(69,911		)	(69,911		)
Balance at September 30, 2017	$	3,606,170		$	(204,680	)	$	3,401,490		$	96,892		$	(5,358	)	$	91,534		$	3,725,615		$	(210,037	)	$	3,515,578



	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	774,918			17			774,935			2,624,026			(3,318		)	2,620,708			—			—			—
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	—			—			—			—			—			—			775,441			—			775,441
Sales	—			—			—			(2,625,207		)	627			(2,624,580		)	—			—			—
Principal payments and retirements	(1,373,600		)	—			(1,373,600		)	—			—			—			(1,379,179		)	101			(1,379,078		)
Charge-offs, net of recoveries	(256,684		)	207,825			(48,859		)	—			—			—			(256,683		)	207,825			(48,858		)
Change in fair value recorded in earnings	—			(127,639		)	(127,639		)	—			(19,461		)	(19,461		)	—			(149,957		)	(149,957		)
Balance at September 30, 2018	$	2,284,844		$	(151,015	)	$	2,133,829		$	—		$	—		$	—		$	2,300,659		$	(148,343	)	$	2,152,316



	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	1,387,671			4			1,387,675			4,072,848			4,290			4,077,138			—			—			—
Transfers (to) from loans held for investment (from) to loans held for sale	(97,449		)	—			(97,449		)	97,449			—			97,449			—			—			—
Issuances	—			—			—			—			—			—			1,389,999			—			1,389,999
Sales	—			—			—			(4,072,848		)	(4,290		)	(4,077,138		)	—			—			—
Principal payments and retirements	(1,856,938		)	—			(1,856,938		)	(557		)	—			(557		)	(1,863,045		)	4			(1,863,041		)
Charge-offs, net of recoveries	(374,252		)	339,700			(34,552		)	—			—			—			(374,251		)	339,701			(34,550		)
Change in fair value recorded in earnings	—			(292,367		)	(292,367		)	—			(5,358		)	(5,358		)	—			(297,725		)	(297,725		)
Balance at September 30, 2017	$	3,606,170		$	(204,680	)	$	3,401,490		$	96,892		$	(5,358	)	$	91,534		$	3,725,615		$	(210,037	)	$	3,515,578

Loan Trailing Fee Liability

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

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 for loan trailing fee liability at September 30, 2018 and December 31, 2017:



	Loan Trailing Fee Liability
	September 30, 2018						December 31, 2017
	Minimum		Maximum		Weighted Average		Minimum		Maximum		Weighted Average
Discount rates	4.0	%	15.6	%	9.6	%	1.9	%	17.1	%	8.9	%
Net cumulative expected loss rates ⁽¹⁾	1.0	%	42.1	%	13.3	%	0.8	%	41.8	%	13.2	%
Cumulative expected prepayment rates ⁽¹⁾	11.3	%	46.1	%	32.3	%	11.3	%	51.0	%	31.4	%


⁽¹⁾	Expressed as a percentage of the original principal balance of the loan.