Securitizations and Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2019

Variable Interest Entity [Line Items]

Summary of Select Information Related to VIEs

The following tables provide the classifications of assets and liabilities on the Company’s Consolidated Balance Sheets for its transactions with consolidated and unconsolidated VIEs at December 31, 2019 and 2018. Additionally, the assets and liabilities in the tables below exclude intercompany balances that eliminate in consolidation:



December 31, 2019	Consolidated VIEs		Unconsolidated VIEs		Total
Assets
Restricted cash	$	30,046	$	—	$	30,046
Securities available for sale at fair value	—		220,135		220,135
Loans held for investment at fair value	197,842		—		197,842
Loans held for investment by the Company at fair value	40,251		—		40,251
Loans held for sale by the Company at fair value	551,455		—		551,455
Accrued interest receivable	4,431		877		5,308
Other assets	1,359		52,098		53,457
Total assets	$	825,384	$	273,110	$	1,098,494
Liabilities
Accrued interest payable	$	3,185	$	—	$	3,185
Accrued expenses and other liabilities	244		—		244
Notes, certificates and secured borrowings at fair value	197,842		—		197,842
Credit facilities and securities sold under repurchase agreements	387,251		—		387,251
Payable to securitization note and certificate holders at fair value	40,610		—		40,610
Total liabilities	629,132		—		629,132
Total net assets	$	196,252	$	273,110	$	469,362



December 31, 2018	Consolidated VIEs		Unconsolidated VIEs		Total
Assets
Restricted cash	$	43,918	$	—	$	43,918
Securities available for sale at fair value	—		116,768		116,768
Loans held for investment at fair value	642,094		—		642,094
Loans held for sale by the Company at fair value	739,216		—		739,216
Accrued interest receivable	10,438		1,214		11,652
Other assets	2,498		29,206		31,704
Total assets	$	1,438,164	$	147,188	$	1,585,352
Liabilities
Accrued interest payable	$	7,594	$	—	$	7,594
Accrued expenses and other liabilities	1,627		—		1,627
Notes, certificates and secured borrowings at fair value	648,908		—		648,908
Payable to securitization note and certificate holders	256,354		—		256,354
Credit facilities and securities sold under repurchase agreements	306,790		57,012		363,802
Total liabilities	1,221,273		57,012		1,278,285
Total net assets	$	216,891	$	90,176	$	307,067

Summary of Activity Related to Personal Whole Loan Securitizations

The following table summarizes activity related to the unconsolidated trusts and Certificate Program trusts, with the transfers accounted for as a sale on the Company’s consolidated financial statements for the years ended December 31, 2019 and 2018:



Year Ended December 31,	2019				2018
	Unconsolidated Trusts		Unconsolidated Certificate Program Trusts		Unconsolidated Trusts		Unconsolidated Certificate Program Trusts
Principal derecognized from loans securitized or sold	$	1,553,847	$	2,868,709	$	1,300,838	$	1,145,616
Net gains (losses) recognized from loans securitized or sold	$	4,809	$	32,417	$	6,039	$	10,483
Fair value of asset-backed senior and subordinated securities, and CLUB Certificate asset-backed securities retained upon settlement ⁽¹⁾	$	75,924	$	140,825	$	65,653	$	56,764
Cash proceeds from loans securitized or sold	$	1,212,521	$	2,555,713	$	867,875	$	1,088,212
Cash proceeds from servicing and other administrative fees on loans securitized or sold	$	16,961	$	17,071	$	13,725	$	3,650
Cash proceeds for interest received on senior securities and subordinated securities	$	5,022	$	7,717	$	3,049	$	1,747

⁽¹⁾

For Structured Program transactions, the Company retained asset-backed senior securities of $98.7 million and $57.3 million, CLUB Certificate asset-backed securities of $101.3 million and $56.8 million, and asset-backed subordinated securities of $16.8 million and $8.3 million for the years ended December 31, 2019 and 2018, respectively.

Unconsolidated VIEs

Variable Interest Entity [Line Items]

Summary of Select Information Related to VIEs

The following tables summarize unconsolidated VIEs with which the Company has significant continuing involvement, but is not the primary beneficiary at December 31, 2019 and 2018:



December 31, 2019			Carrying Value
	Total VIE Assets		Securities Available for Sale		Accrued Interest Receivable		Other Assets		Accrued Expenses and Other Liabilities		Securities Sold Under Repurchase Agreements		Net Assets
Unconsolidated Trusts	$	1,909,219	$	93,881	$	362	$	18,768	$	—	$	—	$	113,011
Certificate Program	2,585,957		126,254		515		25,588		—		—		152,357
Investment Fund	34,170		—		—		7,742		—		—		7,742
Total unconsolidated VIEs	$	4,529,346	$	220,135	$	877	$	52,098	$	—	$	—	$	273,110



December 31, 2019	Maximum Exposure to Loss
	Securities Available for Sale		Accrued Interest Receivable		Other Assets		Accrued Expenses and Other Liabilities		Securities Sold Under Repurchase Agreements		Total Exposure
Unconsolidated Trusts	$	93,881	$	362	$	18,768	$	—	$	—	$	113,011
Certificate Program	126,254		515		25,588		—		—		152,357
Investment Fund	—		—		7,742		—		—		7,742
Total unconsolidated VIEs	$	220,135	$	877	$	52,098	$	—	$	—	$	273,110



December 31, 2018	Carrying Value
	Total VIE Assets		Securities Available for Sale		Accrued Interest Receivable		Other Assets		Accrued Expenses and Other Liabilities		Securities Sold Under Repurchase Agreements			Net Assets
Unconsolidated Trusts	$	1,359,367	$	68,338	$	958	$	11,838	$	—	$	(57,012	)	$	24,122
Certificate Program	973,815		48,430		256		9,115		—		—			57,801
Investment Fund	35,157		—		—		8,253		—		—			8,253
Total unconsolidated VIEs	$	2,368,339	$	116,768	$	1,214	$	29,206	$	—	$	(57,012	)	$	90,176



December 31, 2018	Maximum Exposure to Loss
	Securities Available for Sale		Accrued Interest Receivable		Other Assets		Accrued Expenses and Other Liabilities		Securities Sold Under Repurchase Agreements		Total Exposure
Unconsolidated Trusts	$	68,339	$	958	$	11,838	$	—	$	—	$	81,135
Certificate Program	48,431		256		9,115		—		—		57,802
Investment Fund	—		—		8,253		—		—		8,253
Total unconsolidated VIEs	$	116,770	$	1,214	$	29,206	$	—	$	—	$	147,190

Consolidated VIEs

Variable Interest Entity [Line Items]

Summary of Select Information Related to VIEs

The following table presents a summary of financial assets and liabilities from the Company’s involvement with consolidated VIEs at December 31, 2019 and 2018:



December 31, 2019	Assets		Liabilities			Net Assets
LC Trust	$	201,696	$	(199,520	)	$	2,176
Consolidated Trusts	43,300		(40,687		)	2,613
Warehouse credit facilities	580,388		(388,925		)	191,463
Total consolidated VIEs	$	825,384	$	(629,132	)	$	196,252



December 31, 2018	Assets		Liabilities			Net Assets
LC Trust	$	657,339	$	(656,088	)	$	1,251
Consolidated Trusts	297,821		(256,901		)	40,920
Warehouse credit facility	483,004		(308,284		)	174,720
Total consolidated VIEs	$	1,438,164	$	(1,221,273	)	$	216,891

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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