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Fair Value Measurement (Tables)
3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Assets And Liabilities Measured At Fair Value The following table presents assets and liabilities measured at fair value and categorized as Level 3 in the fair value hierarchy:
December 31,March 31,
20212022
Assets
Loans$252,477 $597,981 
Notes receivable and residual certificates8,288 6,384 
Loan servicing assets18,388 27,960 
Total assets$279,153 $632,325 
Liabilities
Loan servicing liabilities$8,780 $8,290 
Trailing fee liabilities4,315 5,241 
Total liabilities$13,095 $13,531 
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, 2021March 31, 2022
MinimumMaximum
Weighted-Average (2)
MinimumMaximum
Weighted-Average (2)
Discount rate3.42 %16.49 %7.29 %4.68 %16.95 %7.53 %
Credit risk rate (1)
0.08 %55.79 %17.98 %0.01 %79.09 %14.65 %
Prepayment rate (1)
8.70 %88.12 %40.35 %5.75 %91.56 %41.49 %
(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, 2021March 31, 2022
MinimumMaximum
Weighted-Average (2)
MinimumMaximum
Weighted-Average (2)
Notes receivable and residual certificates
Discount rate4.96 %15.72 %6.78 %4.47 %16.17 %7.40 %
Credit risk rate (1)
0.04 %50.69 %18.47 %0.04 %50.69 %18.52 %
Prepayment rate (1)
15.60 %36.08 %27.82 %15.60 %36.08 %27.77 %
_________
(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, 2021 and March 31, 2022, 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,March 31,
20212022
Fair value of loans$252,477 $597,981 
Discount rates
100 basis point increase(3,392)(7,549)
200 basis point increase(6,709)(14,941)
Expected credit loss rates on underlying loans
10% adverse change(3,959)(8,915)
20% adverse change(7,927)(17,790)
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-InvestmentTotal
Fair value at December 31, 2020$60,232 $18,228 $78,460 
Reclassification of loans from HFI to HFS(26)26 — 
Purchases of loans18,240 12,947 31,187 
Sale of loans(46,469)— (46,469)
Purchase of loans for immediate resale1,294,634 — 1,294,634 
Immediate resale(1,294,634)— (1,294,634)
Repayments received(3,310)(2,329)(5,639)
Changes in fair value recorded in earnings357 (558)(201)
Other changes(230)81 (149)
Fair value at March 31, 2021$28,794 $28,395 $57,189 
Loans Held-for-
Sale
Loans Held-for-InvestmentTotal
Fair value at December 31, 2021$142,685 $109,792 $252,477 
Reclassification of loans from HFI to HFS109,792 (109,792)— 
Purchases of loans443,190 — 443,190 
Sale of loans(50,764)— (50,764)
Purchase of loans for immediate resale3,014,594 — 3,014,594 
Immediate resale(3,014,594)— (3,014,594)
Repayments received(29,726)— (29,726)
Changes in fair value recorded in earnings(19,511)— (19,511)
Other changes2,315 — 2,315 
Fair value at March 31, 2022$597,981 $— $597,981 
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, 2020$19,074 
Repayments and settlements(3,119)
Changes in fair value recorded in earnings78 
Fair value at March 31, 2021$16,033 
Notes Receivable and Residual Certificates
Fair value at December 31, 2021$8,288 
Repayments and settlements(2,067)
Changes in fair value recorded in earnings163 
Fair value at March 31, 2022$6,384 
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 condensed consolidated balance sheets:


LoansLoans > 90 Days Past Due
December 31,March 31,December 31,March 31,
2021202220212022
Outstanding principal balance$277,228 $636,132 $1,979 $3,256 
Net fair value and accrued interest adjustments(24,751)(38,151)(1,692)(2,970)
Fair value(1)
$252,477 $597,981 $287 $286 
_________
(1)     Includes $50.1 million and $230.8 million of auto loans as of December 31, 2021 and March 31, 2022, 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, 2021March 31, 2022
MinimumMaximum
Weighted-Average (2)
MinimumMaximum
Weighted-Average (2)
Discount rate13.00 %20.00 %17.69 %13.00 %20.00 %17.56 %
Credit risk rate (1)
0.03 %52.78 %18.36 %0.03 %62.06 %17.84 %
Market-servicing rate (3)(4)(5)
0.62 %3.73 %0.62 %0.62 %3.73 %0.62 %
Prepayment rate (1)
5.99 %91.43 %36.39 %5.99 %92.72 %38.54 %
_________
(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 and prepayment rates as such changes would not result in a significant impact on the fair value as of December 31, 2021 and March 31, 2022, respectively.
December 31,March 31,
20212022
Fair value of loan servicing assets$18,388 $27,960 
Expected market-servicing rates
10% market-servicing rates increase(5,539)(8,150)
20% market-servicing rates increase(11,002)(16,236)
December 31,March 31,
20212022
Fair value of loan servicing liabilities$8,780 $8,290 
Expected market-servicing rates
10% market-servicing rates increase5,357 4,938 
20% market-servicing rates increase10,788 9,940 
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, 2020$6,831 $8,254 
Sale of loans3,452 3,519 
Changes in fair value recorded in earnings(1,549)(920)
Fair value at March 31, 2021$8,734 $10,853 
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at December 31, 2021$18,388 $8,780 
Sale of loans10,610 1,905 
Changes in fair value recorded in earnings(1,038)(2,395)
Fair value at March 31, 2022$27,960 $8,290 
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, 2020$6,831 $8,254 
Sale of loans3,452 3,519 
Changes in fair value recorded in earnings(1,549)(920)
Fair value at March 31, 2021$8,734 $10,853 
Loan Servicing AssetsLoan Servicing Liabilities
Fair value at December 31, 2021$18,388 $8,780 
Sale of loans10,610 1,905 
Changes in fair value recorded in earnings(1,038)(2,395)
Fair value at March 31, 2022$27,960 $8,290 
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, 2020$1,276 
Issuances669 
Repayments and settlements(170)
Fair value at March 31, 2021$1,775 
Trailing Fee Liabilities
Fair value at December 31, 2021$4,315 
Issuances1,667 
Repayments and settlements(629)
Changes in fair value recorded in earnings(112)
Fair value at March 31, 2022$5,241