Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2015

Loans, Loan Servicing Rights, Related Notes and Certificates

The following tables present the fair value hierarchy for assets and liabilities measured at fair value:



September 30, 2015	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Loans	$	—	$	—	$	4,068,974	$	4,068,974
Securities available for sale:
Corporate debt securities	—		250,113		—		250,113
Asset-backed securities	—		54,959		—		54,959
U.S. agency securities	—		20,603		—		20,603
Municipal securities	—		5,843		—		5,843
Other securities	—		7,001		—		7,001
Total securities available for sale	—		338,519		—		338,519
Servicing assets	—		—		7,249		7,249
Total assets	$	—	$	338,519	$	4,076,223	$	4,414,742

Liabilities:
Notes and certificates	$	—	$	—	$	4,095,481	$	4,095,481
Servicing liabilities	—		—		4,394		4,394
Total liabilities	$	—	$	—	$	4,099,875	$	4,099,875


December 31, 2014	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Loans	$	—	$	—	$	2,798,505	$	2,798,505
Servicing assets	—		—		2,181		2,181
Total assets	$	—	$	—	$	2,800,686	$	2,800,686

Liabilities:
Notes and certificates	$	—	$	—	$	2,813,618	$	2,813,618
Servicing liabilities	—		—		3,973		3,973
Total liabilities	$	—	$	—	$	2,817,591	$	2,817,591

Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements

The following tables present quantitative information about the significant unobservable inputs used for our level 3 fair value measurements at September 30, 2015 and December 31, 2014:



		September 30, 2015
		Range of Inputs
Financial Instrument	Unobservable Input	Minimum		Maximum		Weighted- Average
Loans, notes and certificates	Discount rates	3.5	%	17.5	%	8.9	%
	Net cumulative expected loss rates	0.3	%	22.0	%	9.7	%
	Cumulative prepayment rates	21.9	%	38.5	%	27.7	%

Servicing asset/liability	Discount rates	3.5	%	20.5	%	9.6	%
	Net cumulative expected loss rates	0.3	%	21.5	%	8.7	%
	Cumulative prepayment rates	8.4	%	48.7	%	29.0	%
	Base market servicing rates (% per annum on unpaid principal balance)⁽¹⁾	0.50	%	0.75	%	0.50	%


		December 31, 2014
		Range of Inputs
Financial Instrument	Unobservable Input	Minimum		Maximum		Weighted- Average
Loans, notes and certificates	Discount rates	5.2	%	17.4	%	10.1	%
	Net cumulative expected loss rates	0.3	%	22.0	%	10.0	%

Servicing asset/liability	Discount rates	5.3	%	23.7	%	10.7	%
	Net cumulative expected loss rates	0.3	%	22.0	%	10.2	%
	Cumulative prepayment rates	16.5	%	26.7	%	20.0	%
	Base market servicing rates (% per annum on unpaid principal balance)⁽¹⁾	0.50	%	0.70	%	0.50	%

⁽¹⁾ Excludes ancillary fees charged to investors that would be passed on to a third-party servicer.

Fair Value Disclosure And Measurement

The table below shows the estimated impact on the estimated fair value of servicing assets and liabilities, calculated using different base market servicing rate assumptions as of September 30, 2015 and December 31, 2014:



	September 30, 2015						December 31, 2014
	Servicing Assets			Servicing Liabilities			Servicing Assets			Servicing Liabilities
Weighted-average base market servicing rate assumptions	0.50		%	0.50		%	0.50		%	0.50		%
Change in fair value from:
Servicing rate increase to 0.60%	$	(2,566	)	$	1,764		$	(915	)	$	1,416
Servicing rate decrease to 0.40%	$	2,682		$	(1,649	)	$	965		$	(1,366	)

Fair Value, by Balance Sheet Grouping

The following tables present the fair value hierarchy for financial instruments not recorded at fair value:



September 30, 2015	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Cash and cash equivalents	$	579,206	$	—	$	579,206	$	—	$	579,206
Restricted cash	159,216		—		159,216		—		159,216
Deposits	763		—		763		—		763
Total assets	$	739,185	$	—	$	739,185	$	—	$	739,185
Liabilities:
Accounts payable	$	3,756	$	—	$	3,756	$	—	$	3,756
Payables to investors	150,880		—		150,880		—		150,880
Total liabilities	$	154,636	$	—	$	154,636	$	—	$	154,636



December 31, 2014	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Balance at Fair Value
Assets:
Cash and cash equivalents	$	869,780	$	—	$	869,780	$	—	$	869,780
Restricted cash	46,763		—		46,763		—		46,763
Deposits	657		—		657		—		657
Total assets	$	917,200	$	—	$	917,200	$	—	$	917,200
Liabilities:
Accounts payable	$	5,892	$	—	$	5,892	$	—	$	5,892
Payables to investors	38,741		—		38,741		—		38,741
Total liabilities	$	44,633	$	—	$	44,633	$	—	$	44,633

Loans, Notes and Certificates

Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation Table

The following tables present additional information about level 3 loans, notes and certificates, each measured at fair value on a recurring basis, for the third quarters and first nine months of 2015 and 2014:



	Loans									Notes and Certificates
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Beginning balance at June 30, 2015	$	3,694,823		$	(57,440	)	$	3,637,383		$	3,717,556		$	(57,432	)	$	3,660,124
Purchases of loans	1,946,455			—			1,946,455			—			—			—
Issuances of notes and certificates	—			—			—			991,926			—			991,926
Whole loan sales	(954,770		)	—			(954,770		)	—			—			—
Principal payments	(481,701		)	—			(481,701		)	(478,189		)	—			(478,189		)
Charge-offs	(55,365		)	55,365			—			(55,346		)	55,346			—
Recoveries	—			(5,919		)	(5,919		)	—			(5,867		)	(5,867		)
Change in fair value recorded in earnings	—			(72,474		)	(72,474		)	—			(72,513		)	(72,513		)
Ending balance at September 30, 2015	$	4,149,442		$	(80,468	)	$	4,068,974		$	4,175,947		$	(80,466	)	$	4,095,481



	Loans									Notes and Certificates
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Beginning balance at June 30, 2014	$	2,351,515		$	(25,313	)	$	2,326,202		$	2,361,902		$	(25,307	)	$	2,336,595
Purchases of loans	994,497			—			994,497			—			—			—
Issuances of notes and certificates	—			—			—			532,034			—			532,034
Whole loan sales	(462,523		)	—			(462,523		)	—			—			—
Principal payments	(288,102		)	—			(288,102		)	(280,643		)	—			(280,643		)
Charge-offs	(28,910		)	28,910			—			(28,852		)	28,852			—
Recoveries	—			(2,594		)	(2,594		)	—			(2,589		)	(2,589		)
Change in fair value recorded in earnings	—			(33,809		)	(33,809		)	—			(33,757		)	(33,757		)
Ending balance at September 30, 2014	$	2,566,477		$	(32,806	)	$	2,533,671		$	2,584,441		$	(32,801	)	$	2,551,640



	Loans									Notes and Certificates
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Beginning balance at December 31, 2014	$	2,836,729		$	(38,224	)	$	2,798,505		$	2,851,837		$	(38,219	)	$	2,813,618
Purchases of loans	5,075,044			—			5,075,044			—			—			—
Issuances of notes and certificates	—			—			—			2,736,667			—			2,736,667
Whole loan sales	(2,338,346		)	—			(2,338,346		)	—			—			—
Principal payments	(1,280,005		)	—			(1,280,005		)	(1,268,622		)	—			(1,268,622		)
Charge-offs	(143,980		)	143,980			—			(143,935		)	143,935			—
Recoveries	—			(13,729		)	(13,729		)	—			(13,653		)	(13,653		)
Change in fair value recorded in earnings	—			(172,495		)	(172,495		)	—			(172,529		)	(172,529		)
Ending balance at September 30, 2015	$	4,149,442		$	(80,468	)	$	4,068,974		$	4,175,947		$	(80,466	)	$	4,095,481



	Loans									Notes and Certificates
	Outstanding Principal Balance			Valuation Adjustment			Fair Value			Outstanding Principal Balance			Valuation Adjustment			Fair Value
Beginning balance at December 31, 2013	$	1,849,042		$	(20,000	)	$	1,829,042		$	1,859,982		$	(19,992	)	$	1,839,990
Purchases of loans	2,628,758			—			2,628,758			—			—			—
Issuances of notes and certificates	—			—			—			1,534,011			—			1,534,011
Whole loan sales	(1,094,482		)	—			(1,094,482		)	—			—			—
Principal payments	(739,506		)	—			(739,506		)	(732,343		)	—			(732,343		)
Charge-offs	(77,335		)	77,335			—			(77,209		)	77,209			—
Recoveries	—			(5,178		)	(5,178		)	—			(5,153		)	(5,153		)
Change in fair value recorded in earnings	—			(84,963		)	(84,963		)	—			(84,865		)	(84,865		)
Ending balance at September 30, 2014	$	2,566,477		$	(32,806	)	$	2,533,671		$	2,584,441		$	(32,801	)	$	2,551,640

Servicing asset/liability

Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation Table

The following table presents additional information about level 3 servicing assets and liabilities measured at fair value on a recurring basis for the third quarters and first nine months of 2015 and 2014:



	Three Months Ended September 30, 2015						Three Months Ended September 30, 2014
	Servicing Assets			Servicing Liabilities			Servicing Assets			Servicing Liabilities
Fair value at beginning of period	$	5,225		$	4,831		$	1,034		$	2,736
Issuances ⁽¹⁾	3,092			1,402			481			1,809
Changes in fair value, included in servicing fees	(1,436		)	(1,839		)	(182		)	(833		)
Additions, included in deferred revenue	368			—			187			—
Fair value at end of period	$	7,249		$	4,394		$	1,520		$	3,712



	Nine Months Ended September 30, 2015						Nine Months Ended September 30, 2014
	Servicing Assets			Servicing Liabilities			Servicing Assets			Servicing Liabilities
Fair value at beginning of period	$	2,181		$	3,973		$	534		$	936
Issuances ⁽¹⁾	6,476			4,340			1,355			3,464
Changes in fair value, included in servicing fees	(2,467		)	(3,919		)	(841		)	(688		)
Additions, included in deferred revenue	1,059			—			472			—
Fair value at end of period	$	7,249		$	4,394		$	1,520		$	3,712


⁽¹⁾	Represents the offsets to the gains or losses on sales of the related loans, recorded in other revenue (expense).