Fair Value Accounting (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring

The following tables present for each of the fair value hierarchy levels, the Company's assets and liabilities which are measured at fair value on a recurring basis (in thousands):

			Fair Value Measurements at Reporting Date Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
December 31, 2017
Marketable securities, current	$	11,795	$	1	$	—	—	$	11,794
December 31, 2016
Marketable securities, current	$	9,943	$	152	$	—		$	9,791
Marketable securities, non-current	26,545		26,545		—			—
	$	36,488	$	26,697	$	—		$	9,791

Fair Value Inputs, Assets and Liabilities, Quantitative Information

The significant unobservable inputs used in preparing the fair value estimates are:

	As of December 31,
	2017		2016
Weighted average:
Loss severity	62.1	%	49.6	%
Default rate	2	%	2.1	%
Prepayment speed	13.5	%	9.8	%
Servicer's optional redemption date	None		None

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a reconciliation of the beginning and ending balances for the Company's retained mortgage securities – available-for-sale which are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

	For the Year Ended December 31,
	2017			2016
Balance, beginning of period	$	9,791		$	2,011
Increases (decreases) to mortgage securities – available-for-sale:
Proceeds from paydowns of securities, net (A)	(51		)	(75		)
Mark-to-market value adjustment	2,054			7,855
Net increases (decreases) to mortgage securities – available-for-sale	2,003			7,780
Balance, end of period	$	11,794		$	9,791

(A) Cash received on mortgage securities with no cost basis was $2.8 million and $4.7 million during 2017 and 2016, respectively.

Fair Value, by Balance Sheet Grouping

The estimated fair values of the Company's financial instruments are as follows as of December 31, 2017 and 2016 (in thousands):

	As of December 31,
	2017				2016
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Marketable securities	$	11,795	$	11,795	$	36,488	$	36,488
Financial liabilities:
Senior notes	$	85,938	$	23,018	$	85,938	$	23,349

Fair Value Measurements, Nonrecurring

Activity during 2017 for Goodwill, the Company's only Level 3 asset, measured on a nonrecurring basis is included in the following table (in thousands):

Goodwill
Balance, December 31, 2016	$	—
Goodwill recorded in connection with the HCS Acquisition	12,705
Impairment charge	(4,500		)
Balance, December 31, 2017	$	8,205

Financial assets reported at fair value on a nonrecurring basis include the following (in thousands):

	December 31, 2017
	Fair Value (Level 3)		Gains and (Losses)
Goodwill	$	8,205	$	(4,500	)