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Fair Value of Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2023
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:
June 30, 2023Level 1 InputsLevel 2 InputsLevel 3 InputsBalance at
Fair Value
Assets:
Loans held for sale at fair value$— $— $250,361 $250,361 
Loans held for investment at fair value— — 404,119 404,119 
Retail and certificate loans held for investment at fair value— — 26,837 26,837 
Securities available for sale:
U.S. agency residential mortgage-backed securities— 214,516 — 214,516 
Senior asset-backed securities related to Structured Program transactions— 1,139 142,785 143,924 
U.S. agency securities— 79,040 — 79,040 
Mortgage-backed securities— 38,143 — 38,143 
Other asset-backed securities— 28,466 — 28,466 
Other asset-backed securities related to Structured Program transactions— — 16,980 16,980 
Municipal securities— 2,510 — 2,510 
Total securities available for sale— 363,814 159,765 523,579 
Servicing assets— — 85,387 85,387 
Other assets— 4,726 — 4,726 
Total assets$— $368,540 $926,469 $1,295,009 
Liabilities:
Borrowings$— $— $4,460 $4,460 
Retail notes, certificates and secured borrowings— — 26,837 26,837 
Other liabilities— 4,726 2,570 7,296 
Total liabilities$— $4,726 $33,867 $38,593 
December 31, 2022
Level 1 InputsLevel 2 InputsLevel 3 InputsBalance at
Fair Value
Assets:
Loans held for sale at fair value$— $— $110,400 $110,400 
Loans held for investment at fair value— — 925,938 925,938 
Retail and certificate loans held for investment at fair value— — 55,425 55,425 
Securities available for sale:
U.S. agency residential mortgage-backed securities— 214,427 — 214,427 
U.S. agency securities— 74,394 — 74,394 
Mortgaged-backed securities— 22,518 — 22,518 
Other asset-backed securities— 14,203 — 14,203 
Asset-backed securities related to Structured Program transactions— 5,248 12,469 17,717 
Municipal securities— 2,443 — 2,443 
Total securities available for sale— 333,233 12,469 345,702 
Servicing assets— — 84,308 84,308 
Other assets— — 5,099 5,099 
Total assets$— $333,233 $1,193,639 $1,526,872 
Liabilities:
Borrowings$— $— $8,085 8,085
Retail notes, certificates and secured borrowings— — 55,425 55,425 
Other liabilities— — 8,583 8,583
Total liabilities$— $— $72,093 $72,093 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables present additional information about Level 3 loans HFS on a recurring basis:
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Fair value at beginning of period$44,647 $156,730 $110,400 $142,370 
Originations and purchases1,272,118 2,728,499 2,477,147 4,999,424 
Sales(1,238,252)(2,811,843)(2,485,498)(5,069,544)
Principal payments(5,135)(8,524)(11,600)(21,860)
Transfers191,807 (11,888)191,807 (11,888)
Fair value adjustments recorded in earnings(14,824)9,837 (31,895)24,309 
Fair value at end of period$250,361 $62,811 $250,361 $62,811 
The following table presents additional information about Level 3 loans HFI at fair value on a recurring basis:
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Fair value at beginning of period$748,618 $15,384 $925,938 $21,240 
Purchases— — 4,037 14 
Principal payments(156,287)(5,724)(342,738)(11,747)
Transfers(191,634)11,966 (191,634)11,966 
Interest income accretion and fair value adjustments recorded in earnings3,422 (1,043)8,516 (890)
Fair value at end of period$404,119 $20,583 $404,119 $20,583 
The following table presents additional information about Level 3 senior asset-backed securities related to Structured Program transactions measured at fair value on a recurring basis:
Three and Six Months Ended
June 30, 2023
Fair value at beginning of period$— 
Additions144,680 
Cash received(1,290)
Change in unrealized loss(605)
Fair value at end of period$142,785 
The following table presents additional information about Level 3 other asset-backed securities related to Structured Program transactions measured at fair value on a recurring basis:
Three Months EndedSix Months Ended
June 30, 2023
Fair value at beginning of period$10,397 $12,469 
Additions8,667 8,780 
Cash received(2,084)(4,269)
Fair value at end of period$16,980 $16,980 
The following table presents additional information about Level 3 servicing assets measured at fair value on a recurring basis:
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Fair value at beginning of period$89,241 $72,112 $84,308 $67,726 
Issuances (1)
13,576 29,090 27,701 51,455 
Change in fair value, included in Marketplace revenue(17,074)(21,034)(29,650)(38,013)
Other net changes(356)(741)3,028 (1,741)
Fair value at end of period$85,387 $79,427 $85,387 $79,427 
(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 loans HFI at fair value:
June 30, 2023
December 31, 2022
Minimum
Maximum
Weighted-
Average
Minimum
Maximum
Weighted-
Average
Discount rates
8.6 %16.7 %12.7 %8.8 %17.1 %12.7 %
Net cumulative expected loss rates (1)
2.2 %10.2 %6.3 %2.1 %9.8 %5.7 %
Cumulative expected prepayment rates (1)
22.0 %30.7 %27.3 %26.2 %35.3 %30.8 %
(1)    Expressed as a percentage of the acquired principal balance of the loan.
The following table presents quantitative information about the significant unobservable inputs used for the
Company’s Level 3 fair value measurements for other asset-backed securities related to Structured Program transactions:
June 30, 2023
MinimumMaximumWeighted-
Average
Discount rates5.5 %6.6 %5.8 %
Net cumulative expected loss rates (1)
7.2 %9.1 %8.3 %
Cumulative expected prepayment rates (1)
33.0 %34.0 %33.4 %
(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 relating to loans sold to investors:
June 30, 2023December 31, 2022
MinimumMaximumWeighted-
Average		MinimumMaximumWeighted-
Average
Discount rates7.5 %16.4 %9.9 %7.5 %16.4 %10.1 %
Net cumulative expected loss rates (1)
2.0 %36.4 %15.4 %2.1 %36.7 %15.6 %
Cumulative expected prepayment rates (1)
17.0 %47.7 %32.9 %15.8 %47.2 %35.9 %
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.
Schedule of Fair Value Sensitivity of Loans The sensitivity of loans HFI at fair value to adverse changes in key assumptions are as follows:
June 30, 2023December 31, 2022
Loans held for investment at fair value$404,119 $925,938 
Expected weighted-average life (in years)1.00.9
Discount rates:
100 basis point increase$(3,057)$(7,471)
200 basis point increase$(6,071)$(14,830)
Expected credit loss rates on underlying loans:
10% increase$(2,454)$(5,574)
20% increase$(5,006)$(11,307)
Expected prepayment rates:
10% increase$(2,146)$(4,311)
20% increase$(4,157)$(7,480)
Schedule of Sensitivity Analysis of Debt Securities Available-for-Sale
The following tables present adverse changes to the fair value sensitivity of Level 3 other asset-backed securities related to Structured Program transactions to changes in key assumptions:
June 30, 2023
Fair value of interests held$16,980 
Expected weighted-average life (in years)1.6
Discount rates
100 basis point increase$(193)
200 basis point increase$(388)
Expected loss rates
10% increase$(390)
20% increase$(798)
Expected prepayment rates
10% increase$(216)
20% increase$(496)
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:
June 30,
2023		December 31, 2022
Weighted-average market servicing rate assumptions
0.62 %0.62 %
Change in fair value from:
Servicing rate increase by 0.10%
$(9,923)$(10,505)
Servicing rate decrease by 0.10%
$9,923 $10,505 
Fair Value Sensitivity of Servicing Assets
The following table presents the fair value sensitivity of servicing assets to adverse changes in key assumptions:
June 30,
2023		December 31, 2022
Fair value of servicing assets$85,387 $84,308 
Discount rates
100 basis point increase$(726)$(726)
200 basis point increase$(1,453)$(1,451)
Expected loss rates
10% increase$(1,069)$(1,037)
20% increase$(2,137)$(2,074)
Expected prepayment rates
10% increase$(1,790)$(1,994)
20% increase$(3,581)$(3,989)
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:
June 30, 2023Carrying AmountLevel 1 InputsLevel 2 InputsLevel 3 InputsBalance at
Fair Value
Assets:
Loans and leases held for investment, net$5,178,186 $— $— $5,408,746 $5,408,746 
Other assets37,375 — 36,393 1,359 37,752 
Total assets$5,215,561 $— $36,393 $5,410,105 $5,446,498 
Liabilities:
Deposits (1)
$829,798 $— $— $826,478 $826,478 
Borrowings11,215 — 561 10,654 11,215 
Other liabilities59,342 — 28,260 31,082 59,342 
Total liabilities$900,355 $— $28,821 $868,214 $897,035 
December 31, 2022Carrying AmountLevel 1 InputsLevel 2 InputsLevel 3 InputsBalance at
Fair Value
Assets:
Loans and leases held for investment, net$4,705,302 $— $— $4,941,825 $4,941,825 
Other assets36,646 — 35,300 1,397 36,697 
Total assets$4,741,948 $— $35,300 $4,943,222 $4,978,522 
Liabilities:
Deposits (1)
$860,808 $— $— $860,808 $860,808 
Borrowings66,773 — 2,619 64,154 66,773 
Other liabilities62,247 — 30,311 31,936 62,247 
Total liabilities$989,828 $— $32,930 $956,898 $989,828 
(1)    Excludes deposit liabilities with no defined or contractual maturities.