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Fair Value Measurement (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Assets and liabilities measured at fair value
The following tables presents assets and liabilities measured at fair value:
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 $13,095 
December 31, 2022
Level 1Level 2Level 3Total
Assets
Loans$— $— $1,010,421 $1,010,421 
Notes receivable and residual certificates— — 6,181 6,181 
Loan servicing assets— — 36,467 36,467 
Total assets$— $— $1,053,069 $1,053,069 
Liabilities
Loan servicing liabilities$— $— $3,968 $3,968 
Trailing fee liabilities— — 4,852 4,852 
Total liabilities$— $— $8,820 $8,820 
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, 2021December 31, 2022
MinimumMaximum
Weighted-Average (2)
MinimumMaximum
Weighted-Average (2)
Discount rate3.42 %16.49 %7.29 %6.36 %22.28 %11.87 %
Credit risk rate (1)
0.08 %55.79 %17.98 %0.01 %93.09 %16.93 %
Prepayment rate (1)
8.70 %88.12 %40.35 %0.08 %93.43 %40.49 %
(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, 2021December 31, 2022
MinimumMaximum
Weighted-Average (2)
MinimumMaximum
Weighted-Average (2)
Notes receivable and residual certificates
Discount rate4.96 %15.72 %6.78 %8.42 %22.27 %12.79 %
Credit risk rate (1)
0.04 %50.69 %18.47 %0.59 %50.69 %18.43 %
Prepayment rate (1)
15.60 %36.08 %27.82 %10.90 %88.73 %42.66 %
_________
(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 2022, respectively.
December 31,
20212022
Fair value of loans$252,477 $1,010,421 
Discount rates
100 basis point increase(3,392)(11,979)
200 basis point increase(6,709)(23,720)
Expected credit loss rates on underlying loans
10% adverse change(3,959)(11,927)
20% adverse change(7,927)(23,852)
Expected prepayment rates
10% adverse change(239)(2,284)
20% adverse change(512)(4,530)
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 
Purchases of loans(1)
219,128 159,398 378,526 
Sale of loans(1)
(123,370)(40,602)(163,972)
Purchase of loans for immediate resale(1)
8,713,476 — 8,713,476 
Immediate resale of loans(1)
(8,713,476)— (8,713,476)
Repayments received(1)
(10,578)(22,612)(33,190)
Changes in fair value recorded in earnings(3,284)(5,770)(9,054)
Changes in accrued interest and other charges557 1,150 1,707 
Fair value at December 31, 2021$142,685 $109,792 $252,477 
Reclassification of loans(1)
103,677 (103,677)— 
Purchases of loans(1)
1,807,787149,3441,957,131
Sale of loans(1)
(914,369)(914,369)
Purchase of loans for immediate resale(1)
5,992,1485,992,148
Immediate resale of loans(1)
(5,992,148)(5,992,148)
Repayments received(1)
(180,135)(15,194)(195,329)
Changes in fair value recorded in earnings(85,567)(14,215)(99,782)
Changes in accrued interest and other charges8,7321,56110,293
Fair value at December 31, 2022$882,810$127,611$1,010,421
_________
(1)     Represents the unpaid principal balance.
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(11,458)
Changes in fair value recorded in earnings672 
Fair value at December 31, 2021$8,288 
Residual certificates retained under unconsolidated securitization transaction4,680 
Repayments and settlements(6,736)
Changes in fair value recorded in earnings(51)
Fair value at December 31, 2022$6,181 
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,
2021202220212022
Outstanding principal balance$277,228 $1,047,714 $1,979 $9,006 
Net fair value and accrued interest adjustments(24,751)(37,293)(1,692)(7,006)
Fair value(1)
$252,477 $1,010,421 $287 $2,000 
_________
(1)     Includes $50.1 million and $397.7 million of auto loans as of December 31, 2021 and 2022, respectively, of which an immaterial amount is 90 days or more past due for each year 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, 2021December 31, 2022
MinimumMaximum
Weighted-Average (2)
MinimumMaximum
Weighted-Average (2)
Discount rate13.00 %20.00 %17.69 %13.00 %20.00 %17.20 %
Credit risk rate (1)
0.03 %52.78 %18.36 %0.03 %91.76 %16.22 %
Market-servicing rate (3)(4)(5)
0.62 %3.73 %0.62 %0.62 %3.72 %0.62 %
Prepayment rate (1)
5.99 %91.43 %36.39 %0.53 %91.99 %41.19 %
_________
(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, 2021 and 2022, respectively.
December 31,December 31,
20212022
Fair value of loan servicing assets$18,388 $36,467 
Expected market-servicing rates
10% market-servicing rates increase(5,539)(9,989)
20% market-servicing rates increase(11,002)(19,950)
December 31,December 31,
20212022
Fair value of loan servicing liabilities$8,780 $3,968 
Expected market-servicing rates
10% market-servicing rates increase5,357 2,303 
20% market-servicing rates increase10,788 4,640 
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 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 
Sale of loans31,041 2,302 
Changes in fair value recorded in earnings(12,962)(7,114)
Fair value at December 31, 2022$36,467 $3,968 
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 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 
Sale of loans31,041 2,302 
Changes in fair value recorded in earnings(12,962)(7,114)
Fair value at December 31, 2022$36,467 $3,968 
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 
Issuances4,275 
Repayments and settlements(1,240)
Changes in fair value recorded in earnings
Fair value at December 31, 2021$4,315 
Issuances3,898 
Repayments and settlements(3,001)
Changes in fair value recorded in earnings(360)
Fair value at December 31, 2022$4,852