Servicing Rights

6 Months Ended

Jun. 30, 2018

As of June 30, 2018 and December 31, 2017, the remaining unpaid principal balance of term loans we serviced that previously were sold was $160.0 million and $181.0 million, respectively. No loans were sold during the three and six months ended June 30, 2018. During the three months and six months ended June 30, 2017, we sold through OnDeck Marketplace loans with an unpaid principal balance of $9.1 million and $50.2 million, respectively.

For the three months ended June 30, 2018 and 2017, we earned $0.2 million and $0.6 million of servicing revenue, respectively. For the six months ended June 30, 2018 and 2017, we earned $0.5 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 three months and six months ended June 30, 2018 and 2017 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Fair value at the beginning of period	$	75		$	860		$	154		$	1,131
Addition:
Servicing resulting from transfers of financial assets	11			233			63			663
Changes in fair value:
Change in inputs or assumptions used in the valuation model	—			—			—			—
Other changes in fair value ⁽¹⁾	(57		)	(392		)	(188		)	(1,093		)
Fair value at the end of period (Level 3)	$	29		$	701		$	29		$	701

⁽¹⁾ Represents changes due to collection of expected cash flows through June 30, 2018 and 2017.