Servicing Rights

9 Months Ended

Sep. 30, 2017

As of September 30, 2017 and December 31, 2016, we serviced term loans owned by others with a remaining unpaid principal balance of $141.0 million and $222.0 million, respectively. During the three months ended September 30, 2017 and 2016, we sold through OnDeck Marketplace loans with an unpaid principal balance of $5.3 million and $87.5 million, respectively, and during the nine months ended September 30, 2017 and 2016, we sold loans with an unpaid principal balance of $55.5 million and $284.9 million, respectively.

For the three months ended September 30, 2017 and 2016, we earned $0.4 million and $0.3 million of servicing revenue, respectively. For the nine months ended September 30, 2017 and 2016, we earned $1.3 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 three and nine months ended September 30, 2017 (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Fair value at the beginning of period	$	701		$	1,989		$	1,131		$	3,489
Addition:
Servicing resulting from transfers of financial assets	275			717			938			2,272
Changes in fair value:
Other changes in fair value ⁽¹⁾	(347		)	(1,019		)	(1,440		)	(4,074		)
Fair value at the end of period (Level 3)	$	629		$	1,687		$	629		$	1,687

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⁽¹⁾ Represents changes due to collection of expected cash flows through September 30, 2017 and 2016.