Servicing Rights

9 Months Ended

Sep. 30, 2015

As of September 30, 2015 and December 31, 2014, we serviced term loans we sold with remaining unpaid principal balance of $270.3 million and $79.7 million, respectively. During the three months ended September 30, 2015 and 2014, we sold through OnDeck Marketplace loans with an unpaid principal balance of $169.0 million and $21.7 million, respectively, and during the nine months ended September 30, 2015 and 2014 we sold loans with an unpaid principal balance of $404.1 million and $75.0 million, respectively.

For the three months ended September 30, 2015 and 2014, we earned $1.3 million and $0.2 million of servicing revenue, respectively. For the nine months ended September 30, 2015 and 2014, we earned $2.7 million and $0.6 million of servicing revenue, respectively.

The following table summarizes the activity related to the fair value of our servicing assets for the three and nine months ended September 30, 2015:



	Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015
Fair value at the beginning of period (Level 3)	$	78		$	—
Addition:
Servicing resulting from transfers of financial assets	1,466			1,544
Changes in fair value:
Change in inputs or assumptions used in the valuation model	972			972
Other changes in fair value (1)	(264		)	(264		)
Fair value at the end of period	$	2,252		$	2,252

___________

(1) Represents changes due to collection of expected cash flows through September 30, 2015.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References + Details