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Loans at Fair Value and Notes and Certificates at Fair Value (Tables)
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12 Months Ended |
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Dec. 31, 2013
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| Loans, Notes and Certificates Measured at Fair Value on Recurring Basis |
At December 31, 2013 and December 31, 2012, Loans, Notes
and Certificates measured at fair value on a recurring basis (in
thousands) were:
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Loans at Fair Value |
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Notes and Certificates at Fair Value |
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December 31, 2013 |
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December 31, 2012 |
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December 31, 2013 |
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December 31, 2012 |
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Aggregate principal balance outstanding
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$ |
1,849,042 |
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$ |
791,774 |
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$ |
1,859,982 |
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$ |
795,842 |
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Fair valuation adjustments
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(20,000 |
) |
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(10,559 |
) |
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(19,992 |
) |
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(10,526 |
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Fair Value
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$ |
1,829,042 |
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$ |
781,215 |
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$ |
1,839,990 |
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$ |
785,316 |
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| Fair Values of Loans, Notes and Certificates |
We determined the fair values of Loans, Notes and Certificates
using inputs and methods that are categorized in the fair value
hierarchy, as follows (in thousands):
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Level 1 Inputs |
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Level 2 Inputs |
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Level 3 Inputs |
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Fair Value |
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December 31, 2013
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Assets
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Loans at fair value
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$ |
— |
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$ |
— |
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$ |
1,829,042 |
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$ |
1,829,042 |
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Liabilities
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Notes and Certificates
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$ |
— |
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$ |
— |
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$ |
1,839,990 |
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$ |
1,839,990 |
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December 31, 2012
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Assets
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Loans at fair value
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$ |
— |
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$ |
— |
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$ |
781,215 |
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$ |
781,215 |
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Liabilities
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Notes and Certificates
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$ |
— |
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$ |
— |
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$ |
785,316 |
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$ |
785,316 |
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| 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
at December 31, 2013 and December 31, 2012 (in
thousands):
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Loans |
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Notes and
Certificates |
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Fair value at December 31, 2012
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$ |
781,215 |
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$ |
785,316 |
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Purchases of Loans
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2,064,628 |
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— |
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Issuances of Notes and Certificates
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— |
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1,618,269 |
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Principal repayments
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(511,232 |
) |
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(504,330 |
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Whole Loan sales
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(446,224 |
) |
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— |
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Recoveries from sale and collection of charged-off loans
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(1,716 |
) |
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(1,669 |
) |
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Carrying value before fair value adjustments
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1,886,671 |
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1,897,586 |
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Fair valuation adjustments, included in earnings
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(57,629 |
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(57,596 |
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Fair value at December 31, 2013
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$ |
1,829,042 |
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$ |
1,839,990 |
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| 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 December 31, 2013 (in
thousands):
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Range of Inputs |
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Fair Value |
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Valuation Techniques |
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Unobservable Input |
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Minimum |
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Maximum |
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Loans
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$ |
1,829,042 |
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Discounted cash flow |
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Discount rate |
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5.9 |
% |
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15.9 |
% |
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Net cumulative expected loss |
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2.1 |
% |
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23.7 |
% |
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Notes & Certificates
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$ |
1,839,990 |
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Discounted cash flow |
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Discount rate |
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5.9 |
% |
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15.9 |
% |
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Net cumulative expected loss |
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2.1 |
% |
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23.7 |
% |
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