Fair Value of Financial Instruments Measured at Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

Loans, Loan Servicing Rights, Related Notes and Certificates

ccordingly, we classify them as level 3 as follows:

	Level 1 Inputs	Level 2 Inputs	Level 3 Inputs		Total Fair Value
March 31, 2015
Assets:
Loans	—	—	$	3,230,661	$	3,230,661
Servicing assets	—	—	3,496		3,496
Total assets	—	—	$	3,234,157	$	3,234,157
Liabilities:
Notes and certificates	—	—	$	3,249,346	$	3,249,346
Servicing liabilities	—	—	4,397		4,397
Total liabilities	—	—	$	3,253,743	$	3,253,743
December 31, 2014
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 table presents quantitative information about the significant unobservable inputs used for our level 3 fair value measurements at March 31, 2015 and December 31, 2014:

		March 31, 2015
		Range of Inputs
Financial Instrument	Unobservable Input	Minimum		Maximum		Weighted- Average
Loans, notes and certificates	Discount rates	5.1	%	17.2	%	10.0	%
	Net cumulative expected loss rates	0.3	%	22.2	%	10.2	%
Servicing asset/liability	Discount rates	3.5	%	23.4	%	10.4	%
	Net cumulative expected loss rates	0.3	%	22.2	%	10.2	%
	Cumulative prepayment rates	16.4	%	36.0	%	21.5	%
	Market servicing rates (% per annum on unpaid principal balance)	0.5	%	0.7	%	0.5	%
		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	%
	Market servicing rates (% per annum on unpaid principal balance)	0.5	%	0.7	%	0.5	%

Fair Value Disclosure And Measurement

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

	March 31, 2015						December 31, 2014
	Servicing Assets			Servicing Liabilities			Servicing Assets			Servicing Liabilities
Weighted-average market servicing rate assumptions	0.50		%	0.50		%	0.50		%	0.50		%
Change in fair value from:
Servicing rate increase to 0.60%		($1,299	)	1,537				($915	)		$1,416
Servicing rate decrease to 0.40%	1,365			(1,471		)		$965			($1,366	)
Weighted-average cumulative prepayment rate assumptions	21.5		%	21.5		%	20.0		%	20.0		%
Change in fair value from:
25% increase in cumulative prepayments		($120	)		($277	)		($65	)		($228	)
25% decrease in cumulative prepayments	126			285				$67			$231

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 measured at fair value on a recurring basis for the three months ended March 31, 2015 and 2014:

	Loans			Notes and Certificates
Fair value at December 31, 2013	$	1,829,042		$	1,839,990
Purchases of loans	776,801			—
Issuances of notes and certificates	—			510,962
Whole loan sales	(265,582		)	—
Principal payments	(204,950		)	(205,274		)
Recoveries from sale and collection of charged-off loans	(744		)	(734		)
Carrying value before fair value adjustments	2,134,567			2,144,944
Fair value adjustments, included in net loss	(24,749		)	(24,717		)
Fair value at March 31, 2014	$	2,109,818		$	2,120,227
	Loans			Notes and Certificates
Fair value at December 31, 2014	$	2,798,505		$	2,813,618
Purchases of loans	1,474,972			—
Issuances of notes and certificates	—			852,715
Whole loan sales	(622,145		)	—
Principal payments	(369,379		)	(365,711		)
Recoveries from sale and collection of charged-off loans	(3,472		)	(3,461		)
Carrying value before fair value adjustments	3,278,481			3,297,161
Fair value adjustments, included in net loss	(47,820		)	(47,815		)
Fair value at March 31, 2015	$	3,230,661		$	3,249,346

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 three months ended March 31, 2015 and 2014:

	Three Months Ended March 31, 2015						Three Months Ended March 31, 2014
	Servicing Assets			Servicing Liabilities			Servicing Assets			Servicing Liabilities
Fair value at beginning of period	$	2,181		$	3,973		$	534		$	936
Issuances(1)	1,508			1,412			442			512
Changes in fair value, included in servicing fees	(491		)	(988		)	(112		)	(227		)
Additions, included in deferred revenue	298			—			—			—
Fair value at end of period	$	3,496		$	4,397		$	864		$	1,221

⁽¹⁾   Represents the offset to the gain or loss on sale of the related loan, recorded in other revenue.