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Fair Value Measurement (Tables)
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Assets And Liabilities Measured At Fair Value
The following tables presents assets and liabilities measured at fair value:
December 31, 2020
Level 1Level 2Level 3Total
Assets
Loans$— $— $78,460 $78,460 
Notes receivable and residual certificates— — 19,074 19,074 
Loan servicing assets— — 6,831 6,831 
Total assets$— $— $104,365 $104,365 
Liabilities
Loan servicing liabilities$— $— $8,254 $8,254 
Trailing fee liabilities— — 1,276 1,276 
Total liabilities$— $— $9,530 $9,530 
December 31, 2021
Level 1Level 2Level 3Total
Assets
Loans$— $— $252,477 $252,477 
Notes receivable and residual certificates— — 8,288 8,288 
Loan servicing assets— — 18,388 18,388 
Total assets$— $— $279,153 $279,153 
Liabilities
Loan servicing liabilities$— $— $8,780 $8,780 
Trailing fee liabilities— — 4,315 4,315 
Total liabilities$— $— $13,095 $13,095 
Fair Value Of Classes of Loans Held
The following table presents the fair value of classes of loans held by the Company:
December 31,December 31,
20202021
Loans held-for-sale$60,232 $142,685 
Loans held-for-investment18,228 109,792 
Total$78,460 $252,477 
Significant Unobservable Inputs
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loans held-for-investment and held-for-sale:
December 31, 2020December 31, 2021
MinimumMaximum
Weighted-Average (2)
MinimumMaximum
Weighted-Average (2)
Discount rate6.80 %16.99 %7.44 %3.42 %16.49 %7.29 %
Credit risk rate (1)
0.36 %52.31 %19.82 %0.08 %55.79 %17.98 %
Prepayment rate (1)
11.64 %78.36 %31.03 %8.70 %88.12 %40.35 %
(1)Expressed as a percentage of the original principal balance of the loans
(2)Unobservable inputs were weighted by relative fair value
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements of assets related to securitization transactions:
December 31, 2020December 31, 2021
MinimumMaximum
Weighted-Average (2)
MinimumMaximum
Weighted-Average (2)
Notes receivable and residual certificates
Discount rate3.01 %14.00 %5.84 %4.96 %15.72 %6.78 %
Credit risk rate (1)
0.04 %50.69 %17.12 %0.04 %50.69 %18.47 %
Prepayment rate (1)
15.60 %36.88 %27.63 %15.60 %36.08 %27.82 %
_________
(1)Expressed as a percentage of the original principal balance of the loans underlying the financial instruments
(2)Unobservable inputs were weighted by relative fair value
Sensitivity Analysis of Fair Value
The below table presents the sensitivity of the loans held-for-sale and held-for-investment to adverse changes in key assumptions used in the valuation model as of December 31, 2020 and 2021, respectively. The estimated fair value of these loans is not sensitive to adverse changes in expected prepayment rates as such changes would not result in a significant impact on the fair value in either periods.
December 31,
20202021
Fair value of loans$78,460 $252,477 
Discount rates
100 basis point increase(979)(3,392)
200 basis point increase(1,939)(6,709)
Expected credit loss rates on underlying loans
10% adverse change(1,303)(3,959)
20% adverse change(2,611)(7,927)
Rollforward Of Level 3 Assets
The following tables include a rollforward of the loans classified within Level 3 of the fair value hierarchy:
Loans Held-for-
Sale
Loans Held-for-InvestmentLoans Held-for-
Investment (Securitized)
Total
Fair value at December 31, 2019$— $141,555 $90,750 $232,305 
Reclassification of loans from HFI to HFS125,779 (125,779)— — 
Purchases of loans116,127 9,655 — 125,782 
Sale of loans(144,944)— — (144,944)
Purchase of loans for immediate resale2,540,948 — — 2,540,948 
Immediate resale(2,540,948)— — (2,540,948)
Repayments received(28,306)(5,669)(24,018)(57,993)
Changes in fair value recorded in earnings(8,033)(1,589)(9,508)(19,130)
Other changes(391)55 (2)(338)
Changes due to deconsolidation— — (57,222)(57,222)
Fair value at December 31, 2020$60,232 $18,228 $— $78,460 
Purchases of loans219,128 159,398 — 378,526 
Sale of loans(123,370)(40,602)— (163,972)
Purchase of loans for immediate resale8,713,476 — — 8,713,476 
Immediate resale(8,713,476)— — (8,713,476)
Repayments received(10,578)(22,612)— (33,190)
Changes in fair value recorded in earnings(3,284)(5,770)— (9,054)
Other changes557 1,150 — 1,707 
Fair value at December 31, 2021$142,685 $109,792 $— $252,477 
The following tables include a rollforward of the notes receivable and residual certificates related to securitization transactions classified by the Company within Level 3 of the fair value hierarchy:

Notes Receivable and Residual Certificates
Fair value at December 31, 2019$34,116 
Purchases and issuances of securitization notes and residual certificates
Repayments and settlements(14,665)
Changes in fair value recorded in earnings(381)
Fair value at December 31, 2020$19,074 
Repayments and settlements(11,458)
Changes in fair value recorded in earnings672 
Fair value at December 31, 2021$8,288 
Aggregate Fair Value and Principal Outstanding of All Loans and Loans 90 days or More Past Due
The following table presents the aggregate fair value and aggregate principal outstanding of all loans and loans that were 90 days or more past due included in the consolidated balance sheets:

LoansLoans > 90 Days Past Due
December 31,December 31,December 31,December 31,
2020202120202021
Outstanding principal balance$97,497 $277,228 $2,018 $1,979 
Net fair value and accrued interest adjustments(19,037)(24,751)(2,002)(1,692)
Fair value(1)
$78,460 $252,477 $16 $287 
_________
(1)     Includes $2.4 million and $50.1 million of auto loans as of December 31, 2020 and 2021, respectively, of which an immaterial amount is 90 days or more past due for each period presented.
Level 3 Fair Value Assumptions for Loan Servicing Assets and Liabilities
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for loan servicing assets and liabilities:
December 31, 2020December 31, 2021
MinimumMaximum
Weighted-Average (2)
MinimumMaximum
Weighted-Average (2)
Discount rate15.00 %35.00 %22.69 %13.00 %20.00 %17.69 %
Credit risk rate (1)
0.03 %52.78 %17.19 %0.03 %52.78 %18.36 %
Market-servicing rate (3)(4)(5)
0.75 %0.75 %0.75 %0.62 %3.73 %0.62 %
Prepayment rate (1)
9.07 %89.01 %31.62 %5.99 %91.43 %36.39 %
_________
(1)Expressed as a percentage of the original principal balance of the loans underlying the servicing arrangement
(2)Unobservable inputs were weighted by relative fair value
(3)Excludes ancillary fees that would be passed on to a third-party servicer
(4)Expressed as a percentage of the outstanding principal balance of the loan
(5)Includes personal loans and auto loans
Fair Value Sensitivity of Loan Servicing Assets And Liabilities to Adverse Changes in Key Assumptions
The table below presents the fair value sensitivity of loan servicing assets and liabilities to adverse changes in key assumptions. The fair value of loan servicing assets and liabilities is not sensitive to adverse changes in discount rates as such changes would not result in a significant impact on the fair value as of December 31, 2020 and 2021, respectively.
December 31,December 31,
20202021
Fair value of loan servicing assets$6,831 $18,388 
Expected market-servicing rates
10% market-servicing rates increase(19,013)(5,539)
20% market-servicing rates increase(38,027)(11,002)
Expected prepayment rates
10% adverse change(2,061)(285)
20% adverse change(4,212)(565)
December 31,December 31,
20202021
Fair value of loan servicing liabilities$8,254 $8,780 
Expected market-servicing rates
10% market-servicing rates increase22,974 5,357 
20% market-servicing rates increase45,948 10,788 
Expected prepayment rates
10% adverse change2,491 (148)
20% adverse change5,089 (295)
Servicing Liabilities at Fair Value Rollforward
The following tables present a rollforward of the loan servicing assets and liabilities classified by the Company within Level 3 of the fair value hierarchy:
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at December 31, 2019$4,725 $5,140 
Sale of loans7,269 5,739 
Changes in fair value recorded in earnings(5,163)(2,625)
Fair value at December 31, 2020$6,831 $8,254 
Sale of loans21,240 14,324 
Changes in fair value recorded in earnings(9,683)(13,798)
Fair value at December 31, 2021$18,388 $8,780 
Servicing Assets at Fair Value Rollforward
The following tables present a rollforward of the loan servicing assets and liabilities classified by the Company within Level 3 of the fair value hierarchy:
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at December 31, 2019$4,725 $5,140 
Sale of loans7,269 5,739 
Changes in fair value recorded in earnings(5,163)(2,625)
Fair value at December 31, 2020$6,831 $8,254 
Sale of loans21,240 14,324 
Changes in fair value recorded in earnings(9,683)(13,798)
Fair value at December 31, 2021$18,388 $8,780 
Rollforward of Level 3 Liabilities
The following tables include a rollforward of trailing fee liabilities classified by the Company within Level 3 of the fair value hierarchy:

Trailing Fee Liabilities
Fair value at December 31, 2019$504 
Issuances1,130 
Repayments and settlements(339)
Changes in fair value recorded in earnings(19)
Fair value at December 31, 2020$1,276 
Issuances4,275 
Repayments and settlements(1,240)
Changes in fair value recorded in earnings
Fair value at December 31, 2021$4,315