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Fair Value of Assets and Liabilities (Tables)
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Hierarchy of Assets and Liabilities Measured on a Recurring Basis
The following tables present the fair value hierarchy for assets and liabilities measured at fair value at September 30, 2021 and December 31, 2020:
September 30, 2021Level 1 InputsLevel 2 InputsLevel 3 InputsBalance at
Fair Value
Assets:
Loans held for sale at fair value$— $— $152,160 $152,160 
Retail and certificate loans held for investment at fair value— — 298,541 298,541 
Other loans held for investment at fair value— — 27,229 27,229 
Securities available for sale:
U.S. agency residential mortgage-backed securities— 113,894 — 113,894 
Asset-backed senior securities and subordinated securities— 37,708 11,810 49,518 
Commercial mortgage-backed securities— 28,644 — 28,644 
Other asset-backed securities— 27,846 — 27,846 
U.S. agency securities— 27,410 — 27,410 
CLUB Certificate asset-backed securities— — 24,176 24,176 
Municipal securities— 3,242 — 3,242 
Other securities— 200 — 200 
Total securities available for sale— 238,944 35,986 274,930 
Servicing assets— — 63,573 63,573 
Other assets— 3,235 5,357 8,592 
Total assets$— $242,179 $582,846 $825,025 
Liabilities:
Retail notes, certificates and secured borrowings$— $— $298,541 $298,541 
Payable on Structured Program borrowings— — 89,252 89,252 
Other liabilities— — 17,941 17,941 
Total liabilities$— $— $405,734 $405,734 
December 31, 2020Level 1 InputsLevel 2 InputsLevel 3 InputsBalance at
Fair Value
Assets:
Loans held for sale at fair value$— $— $121,902 $121,902 
Retail and certificate loans held for investment at fair value— — 636,686 636,686 
Other loans held for investment at fair value— — 49,954 49,954 
Securities available for sale:
Asset-backed senior securities and subordinated securities
— 75,37216,515 91,887
CLUB Certificate asset-backed securities
— — 50,139 50,139
Other securities— 200— 200
Total securities available for sale— 75,57266,654 142,226
Servicing assets— — 56,347 56,347
Total assets$— $75,572 $931,543 $1,007,115 
Liabilities:
Retail notes, certificates and secured borrowings$— $— $636,774 $636,774 
Payable on Structured Program borrowings— — 152,808 152,808
Other liabilities— — 12,270 12,270
Total liabilities$— $— $801,852 $801,852 
Fair Value Inputs Assets and Liabilities Quantitative Information
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 loans held for sale at fair value at September 30, 2021 and December 31, 2020:
Loans Held for Sale at Fair Value
September 30, 2021December 31, 2020
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rates5.2 %11.6 %9.1 %7.6 %16.0 %8.5 %
Net cumulative expected loss rates (1)
2.5 %25.6 %9.8 %5.0 %28.0 %8.2 %
Cumulative expected prepayment rates (1)
30.6 %44.8 %36.0 %27.2 %41.2 %30.4 %
(1)     Expressed as a percentage of the original principal balance of the loan.
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 other loans held for investment at fair value at September 30, 2021 and December 31, 2020:
Other Loans Held for Investment at Fair Value
September 30, 2021December 31, 2020
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rates7.7 %11.0 %9.4 %7.5 %16.1 %8.8 %
Net cumulative expected loss rates (1)
2.9 %12.3 %7.3 %5.0 %26.3 %10.3 %
Cumulative expected prepayment rates (1)
30.6 %40.2 %35.2 %26.8 %39.7 %30.7 %
(1)     Expressed as a percentage of the original principal balance of the loan.
Schedule Of Fair Value Sensitivity Of Loans
The sensitivity of loans held for sale at fair value to adverse changes in key assumptions as of September 30, 2021 and December 31, 2020, are as follows:
September 30, 2021December 31, 2020
Loans held for sale at fair value$152,160 $121,902 
Expected weighted-average life (in years)1.21.1
Discount rates
100 basis point increase$(1,572)$(1,151)
200 basis point increase$(3,119)$(2,282)
Expected credit loss rates on underlying loans
10% adverse change$(675)$(1,099)
20% adverse change$(1,371)$(2,220)
Expected prepayment rates
10% adverse change$(1,568)$(273)
20% adverse change$(3,242)$(556)
The sensitivity of other loans held for investment at fair value to adverse changes in key assumptions as of September 30, 2021 and December 31, 2020, are as follows:
September 30, 2021December 31, 2020
Other loans held for investment at fair value$27,229 $49,954 
Expected weighted-average life (in years)1.01.1
Discount rates
100 basis point increase$(229)$(541)
200 basis point increase$(453)$(1,073)
Expected credit loss rates on underlying loans
10% adverse change$(135)$(640)
20% adverse change$(275)$(1,295)
Expected prepayment rates
10% adverse change$(223)$(181)
20% adverse change$(461)$(368)
Fair Value of Assets Measured on a Recurring Basis
The following tables present additional information about Level 3 loans held for sale at fair value on a recurring basis for the third quarters and first nine months of 2021 and 2020:
Loans Held for Sale at Fair Value
Outstanding Principal BalanceValuation AdjustmentFair Value
Balance at June 30, 2021
$186,988 $(6,927)$180,061 
Originations and purchases2,339,869 — 2,339,869 
Sales
(2,342,158)(85)(2,342,243)
Principal payments and retirements
(27,211)— (27,211)
Charge-offs, net of recoveries
(1,138)(209)(1,347)
Change in fair value recorded in earnings
— 3,031 3,031 
Balance at September 30, 2021
$156,350 $(4,190)$152,160 
Loans Held for Sale at Fair Value
Outstanding Principal BalanceValuation AdjustmentFair Value
Balance at June 30, 2020
$668,262 $(81,169)$587,093 
Purchases
27,756 (6)27,750 
Transfers from loans held for investment and/or loans held for sale (1)
479 — 479 
Sales
(442,744)51,220 (391,524)
Principal payments and retirements
(44,439)— (44,439)
Charge-offs, net of recoveries
(6,565)6,148 (417)
Change in fair value recorded in earnings
— 1,859 1,859 
Balance at September 30, 2020
$202,749 $(21,948)$180,801 

Loans Held for Sale at Fair Value
Outstanding Principal BalanceValuation AdjustmentFair Value
Balance at December 31, 2020
$132,600 $(10,698)$121,902 
Originations and purchases5,320,264 (1,629)5,318,635 
Transfers from loans and leases held for investment at amortized cost (1)
1,181 — 1,181 
Sales(5,211,984)10,568 (5,201,416)
Principal payments and retirements(78,946)— (78,946)
Charge-offs, net of recoveries(6,765)3,711 (3,054)
Change in fair value recorded in earnings— (6,142)(6,142)
Balance at September 30, 2021
$156,350 $(4,190)$152,160 
Loans Held for Sale at Fair Value
Outstanding Principal BalanceValuation AdjustmentFair Value
Balance at December 31, 2019
$747,394 $(25,039)$722,355 
Purchases1,430,213 (6)1,430,207 
Transfers to loans held for investment and/or loans held for sale (1)
(42,680)— (42,680)
Sales(1,726,678)82,076 (1,644,602)
Principal payments and retirements(186,130)— (186,130)
Charge-offs, net of recoveries(19,370)17,945 (1,425)
Change in fair value recorded in earnings— (96,924)(96,924)
Balance at September 30, 2020
$202,749 $(21,948)$180,801 
(1)    Represents non-cash activity.
The following tables present additional information about Level 3 retail and certificate loans held for investment at fair value and retail notes, certificates and secured borrowings measured at fair value on a recurring basis for the third quarters and first nine months of 2021 and 2020:
Retail and Certificate Loans Held for
 Investment at Fair Value		Retail Notes, Certificates and Secured Borrowings
Outstanding Principal BalanceValuation AdjustmentFair ValueOutstanding Principal BalanceValuation AdjustmentFair Value
Balance at June 30, 2021
$413,935 $(22,573)$391,362 $413,935 $(22,551)$391,384 
Principal payments and retirements
(94,152)— (94,152)(94,152)— (94,152)
Charge-offs, net of recoveries
(5,775)(3,293)(9,068)(5,775)(3,315)(9,090)
Change in fair value recorded in earnings
— 10,399 10,399 — 10,399 10,399 
Balance at September 30, 2021
$314,008 $(15,467)$298,541 $314,008 $(15,467)$298,541 
Retail and Certificate Loans Held for
 Investment at Fair Value		Retail Notes, Certificates and Secured Borrowings
Outstanding Principal BalanceValuation AdjustmentFair ValueOutstanding Principal BalanceValuation AdjustmentFair Value
Balance at June 30, 2020
$851,476 $(66,248)$785,228 $851,476 $(65,548)$785,928 
Purchases
77,389 — 77,389 — — — 
Transfers to retail and certificate loans held for investment and/or loans held for sale (1)
(324)— (324)— — — 
Issuances
— — — 77,389 — 77,389 
Principal payments and retirements
(159,753)— (159,753)(160,077)— (160,077)
Charge-offs, net of recoveries
(12,218)2,049 (10,169)(12,218)1,358 (10,860)
Change in fair value recorded in earnings
— 15,903 15,903 — 16,217 16,217 
Balance at September 30, 2020
$756,570 $(48,296)$708,274 $756,570 $(47,973)$708,597 
Retail and Certificate Loans Held for
 Investment at Fair Value		Retail Notes, Certificates and Secured Borrowings
Outstanding Principal BalanceValuation AdjustmentFair ValueOutstanding Principal BalanceValuation AdjustmentFair Value
Balance at December 31, 2020
$679,903 $(43,217)$636,686 $679,903 $(43,129)$636,774 
Principal payments and retirements
(339,911)— (339,911)(339,911)— (339,911)
Charge-offs, net of recoveries
(25,984)3,890 (22,094)(25,984)3,735 (22,249)
Change in fair value recorded in earnings
— 23,860 23,860 — 23,927 23,927 
Balance at September 30, 2021
$314,008 $(15,467)$298,541 $314,008 $(15,467)$298,541 
Retail and Certificate Loans Held for
 Investment at Fair Value		Retail Notes, Certificates and Secured Borrowings
Outstanding Principal BalanceValuation AdjustmentFair ValueOutstanding Principal BalanceValuation AdjustmentFair Value
Balance at December 31, 2019
$1,148,888 $(69,573)$1,079,315 $1,148,888 $(67,422)$1,081,466 
Purchases
237,283 — 237,283 — — — 
Transfers to retail and certificate loans held for investment and/or loans held for sale (1)
(17,903)— (17,903)— — — 
Issuances
— — — 237,283 — 237,283 
Principal payments and retirements
(547,042)— (547,042)(564,945)— (564,945)
Charge-offs, net of recoveries
(64,656)33,562 (31,094)(64,656)31,345 (33,311)
Change in fair value recorded in earnings
— (12,285)(12,285)— (11,896)(11,896)
Balance at September 30, 2020
$756,570 $(48,296)$708,274 $756,570 $(47,973)$708,597 
(1)    Represents non-cash activity.
The following tables present additional information about Level 3 other loans held for investment at fair value on a recurring basis for the third quarters and first nine months of 2021 and 2020:
Other Loans Held for Investment at Fair Value
Outstanding Principal BalanceValuation AdjustmentFair Value
Balance at June 30, 2021
$38,137 $(3,614)$34,523 
Purchases
6 2 8 
Principal payments and retirements
(7,654)— (7,654)
Charge-offs, net of recoveries
(395)324 (71)
Change in fair value recorded in earnings
— 423 423 
Balance at September 30, 2021
$30,094 $(2,865)$27,229 
Other Loans Held for Investment at Fair Value
Outstanding Principal BalanceValuation AdjustmentFair Value
Balance at June 30, 2020
$75,159 $(9,602)$65,557 
Purchases
201 (189)12 
Transfers to other loans held for investment and/or loans held for sale (1)
(155)— (155)
Principal payments and retirements
(8,205)— (8,205)
Charge-offs, net of recoveries
(768)245 (523)
Change in fair value recorded in earnings
— 2,413 2,413 
Balance at September 30, 2020
$66,232 $(7,133)$59,099 
Other Loans Held for Investment at Fair Value
Outstanding Principal BalanceValuation AdjustmentFair Value
Balance at December 31, 2020
$56,388 $(6,434)$49,954 
Purchases
161 (69)92 
Principal payments and retirements
(24,224)— (24,224)
Charge-offs, net of recoveries
(2,231)1,653 (578)
Change in fair value recorded in earnings
— 1,985 1,985 
Balance at September 30, 2021
$30,094 $(2,865)$27,229 
Other Loans Held for Investment at Fair Value
Outstanding Principal BalanceValuation AdjustmentFair Value
Balance at December 31, 2019
$47,042 $(3,349)$43,693 
Purchases
1,314 (1,194)120 
Transfers from other loans held for investment and/or loans held for sale (1)
43,170 — 43,170 
Principal payments and retirements
(21,838)— (21,838)
Charge-offs, net of recoveries
(3,456)756 (2,700)
Change in fair value recorded in earnings
— (3,346)(3,346)
Balance at September 30, 2020
$66,232 $(7,133)$59,099 
(1)    Represents non-cash activity.
The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis for the third quarters and first nine months of 2021 and 2020:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Fair value at beginning of period$58,728 $65,515 $56,347 $89,680 
Issuances (1)
21,071 7,783 46,274 27,119 
Change in fair value, included in Marketplace revenue(14,984)(13,376)(39,584)(48,046)
Other net changes included in Deferred revenue(1,242)(384)536 (9,215)
Fair value at end of period$63,573 $59,538 $63,573 $59,538 
(1)    Represents the gains or losses on sales of the related loans.
Quantitative Information about Significant Unobservable Inputs Used for Fair Value Measurements
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for retail and certificate loans held for investment at fair value and the related retail notes, certificates and secured borrowings at September 30, 2021 and December 31, 2020:
Retail and Certificate Loans Held for Investment at Fair Value,
and Retail Notes, Certificates and Secured Borrowings
September 30, 2021December 31, 2020
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rates7.9 %15.8 %10.0 %7.6 %15.0 %9.4 %
Net cumulative expected loss rates (1)
3.0 %18.7 %8.7 %4.3 %28.1 %11.2 %
Cumulative expected prepayment rates (1)
32.0 %41.0 %37.5 %27.3 %35.7 %30.4 %
(1)     Expressed as a percentage of the original principal balance of the loan, note, certificate or secured borrowing.
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for asset-backed securities related to Structured Program transactions at September 30, 2021 and December 31, 2020:
Asset-Backed Securities Related to Structured Program Transactions
September 30, 2021December 31, 2020
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rates6.0 %38.0 %25.0 %2.2 %25.1 %8.4 %
Net cumulative expected loss rates (1)
3.3 %19.2 %12.0 %5.4 %28.9 %18.8 %
Cumulative expected prepayment rates (1)
15.4 %35.1 %28.9 %6.3 %30.5 %24.8 %
(1)    Expressed as a percentage of the outstanding collateral balance.
The following table presents quantitative information about the significant unobservable inputs used for the Company’s Level 3 fair value measurements for servicing assets at September 30, 2021 and December 31, 2020:
Servicing Assets
September 30, 2021December 31, 2020
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rates7.5 %15.1 %10.0 %4.8 %16.4 %9.9 %
Net cumulative expected loss rates (1)
2.5 %25.5 %10.0 %4.5 %26.3 %12.5 %
Cumulative expected prepayment rates (1)
32.3 %45.5 %37.1 %27.0 %38.9 %31.2 %
Total market servicing rates (% per annum on outstanding principal balance) (2)
0.62 %0.62 %0.62 %0.62 %0.62 %0.62 %
(1)     Expressed as a percentage of the original principal balance of the loan.
(2)     Includes collection fees estimated to be paid to a hypothetical third-party servicer.
Fair Value Sensitivity of Loans
The following tables present adverse changes to the fair value sensitivity of Level 2 and Level 3 asset-backed securities related to Structured Program transactions to changes in key assumptions at September 30, 2021 and December 31, 2020:
September 30, 2021
Asset-Backed Securities Related to
Structured Program Transactions
Senior SecuritiesSubordinated SecuritiesCLUB Certificates
Fair value of interests held$37,708 $11,810 $24,176 
Expected weighted-average life (in years)0.71.30.8
Discount rates
100 basis point increase$(260)$(109)$(187)
200 basis point increase$(515)$(232)$(370)
Expected credit loss rates on underlying loans
10% adverse change$— $(854)$(587)
20% adverse change$— $(1,746)$(1,204)
Expected prepayment rates
10% adverse change$— $(473)$(323)
20% adverse change$— $(1,106)$(673)

December 31, 2020
Asset-Backed Securities Related to
Structured Program Transactions
Senior SecuritiesSubordinated SecuritiesCLUB Certificates
Fair value of interests held$75,372 $16,515 $50,139 
Expected weighted-average life (in years)0.91.40.9
Discount rates
100 basis point increase$(579)$(161)$(405)
200 basis point increase$(1,145)$(343)$(800)
Expected credit loss rates on underlying loans
10% adverse change$— $(1,831)$(1,528)
20% adverse change$— $(3,718)$(3,095)
Expected prepayment rates
10% adverse change$— $(791)$(659)
20% adverse change$— $(1,736)$(1,343)
Fair Value, Liabilities Measured on Recurring Basis
The following table presents additional information about Level 3 asset-backed securities related to Structured Program transactions measured at fair value on a recurring basis for the third quarters and first nine months of 2021 and 2020:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Fair value at beginning of period$45,918 $95,590 $66,654 $110,796 
Additions488 446 1,445 26,458 
Redemptions(1,525)(426)(3,749)(802)
Transfers— (517)— (517)
Cash received(12,869)(20,297)(42,683)(54,371)
Change in unrealized gain2,110 3,413 6,968 288 
Accrued interest1,369 1,823 4,064 5,649 
Reversal of (impairment on) securities available for sale495 3,669 3,287 (3,800)
Fair value at end of period$35,986 $83,701 $35,986 $83,701 
Fair Value Disclosure And Measurement The table below shows the impact on the estimated fair value of servicing assets, calculated using different market servicing rate assumptions as of September 30, 2021 and December 31, 2020:
Servicing Assets
September 30, 2021December 31, 2020
Weighted-average market servicing rate assumptions
0.62 %0.62 %
Change in fair value from:
Servicing rate increase by 0.10%
$(8,904)$(7,379)
Servicing rate decrease by 0.10%
$8,904 $7,379 
Fair Value Sensitivity of Servicing Assets
The following table presents the fair value sensitivity of servicing assets to adverse changes in key assumptions as of September 30, 2021 and December 31, 2020:
Servicing Assets
September 30, 2021December 31, 2020
Fair value of servicing assets$63,573 $56,347 
Discount rates
100 basis point increase$(523)$(455)
200 basis point increase$(1,047)$(911)
Expected loss rates
10% adverse change$(442)$(346)
20% adverse change$(884)$(691)
Expected prepayment rates
10% adverse change$(2,681)$(1,596)
20% adverse change$(5,362)$(3,192)
Fair Value, by Balance Sheet Grouping
The following tables present the fair value hierarchy for financial instruments, assets, and liabilities not recorded at fair value at September 30, 2021 and December 31, 2020:
September 30, 2021Carrying AmountLevel 1 InputsLevel 2 InputsLevel 3 InputsBalance at
Fair Value
Assets:
Loans and leases held for investment, net$2,603,256 $— $— $2,741,859 $2,741,859 
Other assets2,717 — 12,246 2,717 14,963 
Total assets$2,605,973 $— $12,246 $2,744,576 $2,756,822 
Liabilities:
Deposits$73,065 $— $— $73,065 $73,065 
Short-term borrowings46,110 — 25,563 20,547 46,110 
Advances from PPPLF391,945 — — 391,945 391,945 
Other long-term debt15,563 — — 15,563 15,563 
Other liabilities45,457 — 20,910 24,547 45,457 
Total liabilities$572,140 $— $46,473 $525,667 $572,140 

December 31, 2020Carrying AmountLevel 1 InputsLevel 2 InputsLevel 3 InputsBalance at
Fair Value
Assets:
Total cash and cash equivalents (1)
$524,963 $— $524,963 $— $524,963 
Restricted cash (1)
103,522 — 103,522 — 103,522 
Other assets914 — 914 — 914 
Total assets$629,399 $— $629,399 $— $629,399 
Liabilities:
Short-term borrowings$104,989 $— $65,121 $39,868 $104,989 
Other liabilities57,536 — 43,984 13,552 57,536 
Total liabilities$162,525 $— $109,105 $53,420 $162,525 
(1)    Carrying amount approximates fair value due to the short maturity of these financial instruments.