Member Loans at Fair Value and Notes and Certificates at Fair Value (Tables)

9 Months Ended

Sep. 30, 2013

Member Loans and Notes and Certificates Measured at Fair Value on Recurring Basis

At September 30, 2013 and December 31, 2012, Member Loans and Notes and Certificates measured at fair value on a recurring basis (in thousands) were:

	Member Loans at fair value						Notes and Certificates at fair value
	September 30, 2013			December 31, 2012			September 30, 2013			December 31, 2012
Aggregate principal balance outstanding	$	1,534,340		$	791,774		$	1,540,631		$	795,842
Fair valuation adjustments		(17,664	)		(10,559	)		(17,656	)		(10,526	)
Fair Value	$	1,516,676		$	781,215		$	1,522,975		$	785,316

Fair Values of Member Loans and Notes

We determined the fair values of Member Loans and Notes and Certificates using inputs and methods that are categorized in the fair value hierarchy of ASC 820, as follows (in thousands):

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Fair Value
September 30, 2013
Assets
Member Loans at fair value	$	—	$	—	$	1,516,676	$	1,516,676
Liabilities
Notes and Certificates at fair value	$	—	$	—	$	1,522,975	$	1,522,975
December 31, 2012
Assets
Member Loans at fair value	$	—	$	—	$	781,215	$	781,215
Liabilities
Notes and Certificates at fair value	$	—	$	—	$	785,316	$	785,316

Additional Information about Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2013 (in thousands):

	Member Loans			Notes and Certificates
Fair value at December 31, 2012	$	781,215		$	785,316
Issuances		1,366,207			1,115,694
Principal repayments		(341,256	)		(339,048	)
Loans sold to third parties		(250,433	)		—
Recoveries from sale and collection of charged-off loans		(1,180	)		(1,139	)
Carrying value before fair value adjustments		1,554,553			1,560,823
Fair valuation adjustments, included in earnings		(37,877	)		(37,848	)
Fair value at September 30, 2013	$	1,516,676		$	1,522,975

Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements

The following table presents quantitative information about the significant unobservable inputs used for certain of our Level 3 fair value measurements at September 30, 2013 (in thousands):

					Range of Inputs
	Fair Value		Valuation Techniques	Unobservable Input	Minimum			Maximum
Member Loans	$	1,516,676	Discounted cash flow	Discount rate		5.5	%		13.2	%
				Net cumulative expected loss		2.1	%		29.3	%
Notes & Certificates	$	1,522,975	Discounted cash flow	Discount rate		5.5	%		13.2	%
				Net cumulative expected loss		2.1	%		29.3	%