Servicing Rights

12 Months Ended

Dec. 31, 2016

As of December 31, 2016 and 2015, we serviced term loans we sold with a remaining unpaid principal balance of $222.0 million and $345.9 million, respectively. During the years ended December 31, 2016, 2015 and 2014, we sold through OnDeck Marketplace loans with an unpaid principal balance of $368.3 million, $600.0 million and $139.1 million, respectively.

For the years ended December 31, 2016, 2015 and 2014, we earned $1.2 million, $3.5 million and $0.9 million of servicing revenue, respectively.

The following table summarizes the activity related to the fair value of our servicing assets for the year ended December 31:



	2016			2015
Fair value at the beginning of period	$	3,489		$	—
Addition:
Servicing resulting from transfers of financial assets	2,690			3,708
Changes in fair value:
Change in inputs or assumptions used in the valuation model	—			1,051
Other changes in fair value ⁽¹⁾	(5,048		)	(1,270		)
Fair value at the end of period (Level 3)	$	1,131		$	3,489

___________

⁽¹⁾ Represents changes due to collection of expected cash flows through December 31, 2016 and 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.

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