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Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings Loans Held for Investment, Loans Held for Sale, Notes, Certificates and Secured Borrowings

Loans Held for Investment, Notes, Certificates and Secured Borrowings
The Company issues member payment dependent notes and the LC Trust issues certificates as a means to allow investors to invest in the corresponding loans. At December 31, 2019 and 2018, loans held for investment, notes, certificates and secured borrowings measured at fair value on a recurring basis were as follows:
 
Loans Held for Investment
 
Notes, Certificates and Secured Borrowings
December 31,
2019
 
2018
 
2019
 
2018
Aggregate principal balance outstanding
$
1,148,888

 
$
2,013,438

 
$
1,148,888

 
$
2,033,258

Net fair value adjustments
(69,573
)
 
(130,187
)
 
(67,422
)
 
(127,383
)
Fair value
$
1,079,315

 
$
1,883,251

 
$
1,081,466

 
$
1,905,875



At December 31, 2019 and 2018, a fair value of $18.0 million and $76.5 million included in “Loans held for investment at fair value” was pledged as collateral for secured borrowings, respectively. See “Note 15. Secured Borrowings” for additional information.

The following table provides the balances of notes, certificates and secured borrowings at fair value at the end of the periods indicated:
December 31,
2019
 
2018
Notes
$
863,488

 
$
1,176,333

Certificates
197,842

 
648,908

Secured borrowings
20,136

 
80,634

Total notes, certificates and secured borrowings
$
1,081,466

 
$
1,905,875



Loans Invested in by the Company

At December 31, 2019 and 2018, loans invested in by the Company for which there were no associated notes, certificates or secured borrowings (with the exception of $40.3 million and $286.3 million in loans in consolidated trusts as of December 31, 2019 and 2018, respectively) were as follows:
 
Loans Invested in by the Company
 
Loans Held for Investment
 
Loans Held for Sale
 
Total
December 31,
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Aggregate principal balance outstanding
$
47,042

 
$
3,518

 
$
747,394

 
$
869,715

 
$
794,436

 
$
873,233

Net fair value adjustments
(3,349
)
 
(935
)
 
(25,039
)
 
(29,694
)
 
(28,388
)
 
(30,629
)
Fair value
$
43,693

 
$
2,583

 
$
722,355

 
$
840,021

 
$
766,048

 
$
842,604



The net fair value adjustments of $(28.4) million, $(30.6) million and $(16.6) million represent net unrealized losses recorded in earnings on loans invested in by the Company at December 31, 2019, 2018 and 2017, respectively. Total fair value adjustments recorded in earnings on loans invested in by the Company of $(141.0) million, $(102.0) million and $(25.8) million during the years ended December 31, 2019, 2018 and 2017, respectively, include net realized losses and changes in net unrealized losses. Net interest income earned on loans invested in by the Company during the years ended December 31, 2019, 2018 and 2017 was $80.9 million, $90.9 million and $39.8 million, respectively.

The Company used its own capital to purchase $5.3 billion in loans during the year ended December 31, 2019 and sold $5.1 billion in loans during the year ended December 31, 2019, of which $4.0 billion was securitized or sold to series trusts in connection with the Company’s Certificate Program and $1.1 billion was sold to whole loan investors. The fair value of loans invested in by the Company was $766.0 million at December 31, 2019, which was held for sale primarily for future anticipated Structured Program transactions and sales to loan investors. In the fourth quarter of 2019, the Company sponsored a new Structured Program transaction that was consolidated, resulting in the recognition of $40.3 million in loans held for investment by the Company at fair value and a related payable to securitization note and certificate holders of $40.6 million as of December 31, 2019. In May 2019, the Company deconsolidated a securitization trust, which resulted in the derecognition of $236.3 million in loans held for sale by the Company at fair value. See “Note 7. Securitizations and Variable Interest Entities” and “Note 14. Debt” for further discussion on the Company’s consolidated trusts and “Note 8. Fair Value of Assets and Liabilities” for a fair value rollforward of loans invested in by the Company for the years ended December 31, 2019 and 2018.

At December 31, 2019 and 2018, loans with a fair value of $551.5 million and $453.0 million included in “Loans held for sale by the Company at fair value” was pledged as collateral for the Company’s warehouse credit facilities, respectively. See “Note 14. Debt” for additional information related to these debt obligations.

Loans that were 90 days or more past due (including non-accrual loans) were as follows:
December 31,
2019
 
2018
Loans held for investment:
 
 
 
Outstanding principal balance
$
10,755

 
$
19,707

Net fair value adjustments
(9,663
)
 
(16,166
)
Fair value
$
1,092

 
$
3,541

Number of loans (not in thousands)
1,428

 
2,309

 
 
 
 
Loans invested in by the Company:
 
 
 
Outstanding principal balance
$
2,315

 
$
2,060

Net fair value adjustments
(2,016
)
 
(1,710
)
Fair value
$
299

 
$
350

Number of loans (not in thousands)
338

 
356