Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present information about our assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 (in thousands):



	June 30, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Servicing assets	$	—	$	—	$	29	$	29
Total assets	$	—	$	—	$	29	$	29



	December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Servicing assets	$	—	$	—	$	154	$	154
Total assets	$	—	$	—	$	154	$	154

Summary of Significant Unobservable Inputs for Level 3 Fair Value Measurement

The following tables presents quantitative information about the significant unobservable inputs used for certain of our Level 3 fair value measurement as of June 30, 2018 and December 31, 2017:



	June 30, 2018
	Unobservable input	Minimum		Maximum		Weighted Average
Servicing assets	Discount rate	30.00	%	30.00	%	30.00	%
	Cost of service⁽¹⁾	0.04	%	0.13	%	0.13	%
	Renewal rate	41.06	%	51.83	%	51.01	%
	Default rate	10.63	%	10.92	%	10.67	%
⁽¹⁾ Estimated cost of servicing a loan as a percentage of unpaid principal balance.



	December 31, 2017
	Unobservable input	Minimum		Maximum		Weighted Average
Servicing assets	Discount rate	30.00	%	30.00	%	30.00	%
	Cost of service⁽¹⁾	0.04	%	0.13	%	0.12	%
	Renewal rate	41.06	%	51.83	%	49.59	%
	Default rate	10.63	%	10.92	%	10.70	%
⁽¹⁾ Estimated cost of servicing a loan as a percentage of unpaid principal balance.

Summary of Effect on Changes in Estimate for Servicing Asset Fair Value

The following table summarizes the effect adverse changes in estimate would have on the fair value of the servicing asset as of June 30, 2018 and December 31, 2017 given a hypothetical changes in default rate and cost to service (in thousands):



	June 30, 2018			December 31, 2017
	Servicing Assets
Default rate assumption:
Default rate increase of 25%	$	(9	)	$	(40	)
Default rate increase of 50%	$	(16	)	$	(76	)
Cost to service assumption:
Cost to service increase by 25%	$	(14	)	$	(63	)
Cost to service increase by 50%	$	(28	)	$	(126	)

Schedule of Assets and Liabilities Disclosed at Fair Value

The following tables summarize the carrying value and fair value of our loans held for investment and fixed-rate debt (in thousands):



	June 30, 2018
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Loans held for investment, net	$	922,530	$	1,024,712	$	—	$	—	$	1,024,712
Total assets	$	922,530	$	1,024,712	$	—	$	—	$	1,024,712


Liabilities:
Fixed-rate debt	$	271,367	$	261,717	$	—	$	—	$	261,717
Total fixed-rate debt	$	271,367	$	261,717	$	—	$	—	$	261,717



	December 31, 2017
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Loans held for investment, net	$	843,781	$	932,343	$	—	$	—	$	932,343
Total assets	$	843,781	$	932,343	$	—	$	—	$	932,343


Liabilities:
Fixed-rate debt	$	300,706	$	293,512	$	—	$	—	$	293,512
Total fixed-rate debt	$	300,706	$	293,512	$	—	$	—	$	293,512