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Transfers of Financial Assets | 6 Months Ended
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Jun. 30, 2022
Transfers and Servicing [Abstract] |
Transfers of Financial Assets | Transfers of Financial Assets We regularly transfer financial assets and account for such transfers as either sales or secured borrowings depending on the facts and circumstances. When a transfer of financial assets qualifies as a sale, in many instances we have continued involvement as the servicer of those financial assets. As we expect the benefits of servicing to be more than just adequate, we recognize a servicing asset. Further, in the case of securitization-related transfers that qualify as sales, we have additional continued involvement as an investor, albeit at insignificant levels relative to the expected gains and losses of the securitization. In instances where a transfer is accounted for as a secured borrowing, we perform servicing (but we do not recognize a servicing asset) and typically maintain a significant investment relative to the expected gains and losses of the securitization. In whole loan sales, we do not have a residual financial interest in the loans, nor do we have any other power over the loans that would constrain us from recognizing a sale. Additionally, we have no repurchase requirements related to transfers of personal loans, student loans and non-Federal National Mortgage Association (“FNMA”) home loans other than standard origination representations and warranties, for which we record a liability based on expected repurchase obligations. For FNMA home loans, we have customary FNMA repurchase requirements, which do not constrain sale treatment but result in a liability for the expected repurchase requirement. The following table summarizes our student and personal loan securitization transfers qualifying for sale accounting treatment for the three and six months ended June 30, 2021. There were no loan securitization transfers qualifying for sale accounting treatment during the three and six months ended June 30, 2022.
|  |  | Three Months Ended June 30, |  |  |  | Six Months Ended June 30,
|  |  | 2021 |  |  |  | 2021
Student loans |  |  |  |  |  |  |
Fair value of consideration received: |  |  |  |  |  |  |
Cash |  |  | $ | 196,223 |  |  |  |  | $ | 696,264 |
Securitization investments |  |  | 10,403 |  |  |  |  | 36,784 |
Servicing assets recognized |  |  | 2,370 |  |  |  |  | 31,101 |
Total consideration |  |  | 208,996 |  |  |  |  | 764,149 |
Aggregate unpaid principal balance and accrued interest of loans sold |  |  | 200,379 |  |  |  |  | 726,505 |
Gain from loan sales |  |  | $ | 8,617 |  |  |  |  | $ | 37,644 |
Personal loans |  |  |  |  |  |  |
Fair value of consideration received: |  |  |  |  |  |  |
Cash |  |  | $ | 198,491 |  |  |  |  | $ | 198,491 |
Securitization investments |  |  | 10,481 |  |  |  |  | 10,481 |
Servicing assets recognized |  |  | 1,238 |  |  |  |  | 1,238 |
Total consideration |  |  | 210,210 |  |  |  |  | 210,210 |
Aggregate unpaid principal balance and accrued interest of loans sold |  |  | 200,806 |  |  |  |  | 200,806 |
Gain from loan sales |  |  | $ | 9,404 |  |  |  |  | $ | 9,404 |
The following table summarizes our whole loan sales during the periods indicated:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Student loans |  |  |  |  |  |  |
Fair value of consideration received: |  |  |  |  |  |  |
Cash | $ | 257,859 |  |  | $ | 425,369 |  |  | $ | 806,770 |  |  | $ | 847,710 |
Servicing assets recognized | 2,991 |  |  | 3,740 |  |  | 8,815 |  |  | 8,598 |
Repurchase liabilities recognized | (41) |  |  | (79) |  |  | (121) |  |  | (158) |
Total consideration | 260,809 |  |  | 429,030 |  |  | 815,464 |  |  | 856,150 |
Aggregate unpaid principal balance and accrued interest of loans sold | 261,324 |  |  | 412,222 |  |  | 807,611 |  |  | 825,312 |
Gain (loss) from loan sales | $ | (515) |  |  | $ | 16,808 |  |  | $ | 7,853 |  |  | $ | 30,838 |
Home loans |  |  |  |  |  |  |
Fair value of consideration received: |  |  |  |  |  |  |
Cash | $ | 322,219 |  |  | $ | 856,317 |  |  | $ | 681,919 |  |  | $ | 1,552,514 |
Servicing assets recognized | 4,482 |  |  | 9,367 |  |  | 8,720 |  |  | 15,906 |
Repurchase liabilities recognized | (315) |  |  | (1,035) |  |  | (735) |  |  | (1,974) |
Total consideration | 326,386 |  |  | 864,649 |  |  | 689,904 |  |  | 1,566,446 |
Aggregate unpaid principal balance and accrued interest of loans sold | 342,952 |  |  | 841,734 |  |  | 708,512 |  |  | 1,519,303 |
Gain (loss) from loan sales | $ | (16,566) |  |  | $ | 22,915 |  |  | $ | (18,608) |  |  | $ | 47,143 |
Personal loans |  |  |  |  |  |  |
Fair value of consideration received: |  |  |  |  |  |  |
Cash | $ | 1,163,029 |  |  | $ | 801,437 |  |  | $ | 2,181,718 |  |  | $ | 1,612,689 |
Servicing assets recognized | 7,659 |  |  | 5,078 |  |  | 14,083 |  |  | 11,081 |
Repurchase liabilities recognized | (2,789) |  |  | (1,980) |  |  | (5,087) |  |  | (4,064) |
Total consideration received | 1,167,899 |  |  | 804,535 |  |  | 2,190,714 |  |  | 1,619,706 |
Aggregate unpaid principal balance and accrued interest of loans sold | 1,129,237 |  |  | 773,194 |  |  | 2,111,092 |  |  | 1,555,723 |
Gain from loan sales | $ | 38,662 |  |  | $ | 31,341 |  |  | $ | 79,622 |  |  | $ | 63,983 |
The following table presents information as of the dates indicated about the unpaid principal balances of transferred loans that are not recorded in our unaudited condensed consolidated balance sheets, but with which we have a continuing involvement through our servicing agreements:
| Student Loans |  | Home Loans |  | Personal Loans |  | Total
June 30, 2022 |  |  |  |  |  |  |
Loans in repayment | $ | 8,911,840 |  |  | $ | 4,971,034 |  |  | $ | 5,291,541 |  |  | $ | 19,174,415 |
Loans in-school/grace/deferment | 39,721 |  |  | — |  |  | — |  |  | 39,721 |
Loans in forbearance | 46,176 |  |  | 14,092 |  |  | 542 |  |  | 60,810 |
Loans in delinquency | 102,946 |  |  | 8,565 |  |  | 100,602 |  |  | 212,113 |
Total loans serviced | $ | 9,100,683 |  |  | $ | 4,993,691 |  |  | $ | 5,392,685 |  |  | $ | 19,487,059 |
December 31, 2021 |  |  |  |  |  |  |
Loans in repayment | $ | 9,852,957 |  |  | $ | 4,575,001 |  |  | $ | 5,138,299 |  |  | $ | 19,566,257 |
Loans in-school/grace/deferment | 37,949 |  |  | — |  |  | — |  |  | 37,949 |
Loans in forbearance | 44,833 |  |  | 40,353 |  |  | 1,120 |  |  | 86,306 |
Loans in delinquency | 112,885 |  |  | 7,465 |  |  | 75,275 |  |  | 195,625 |
Total loans serviced | $ | 10,048,624 |  |  | $ | 4,622,819 |  |  | $ | 5,214,694 |  |  | $ | 19,886,137 |
The following table presents additional information during the periods indicated about the servicing cash flows received and net charge-offs related to transferred loans with which we have a continuing involvement:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Student loans |  |  |  |  |  |  |
Servicing fees collected | $ | 11,045 |  |  | $ | 14,269 |  |  | $ | 20,213 |  |  | $ | 23,294 |
Charge-offs, net of recoveries(1) | 9,192 |  |  | 4,651 |  |  | 17,412 |  |  | 7,704 |
Home Loans |  |  |  |  |  |  |
Servicing fees collected | $ | 2,930 |  |  | $ | 1,918 |  |  | $ | 5,566 |  |  | $ | 3,531 |
Personal Loans |  |  |  |  |  |  |
Servicing fees collected | $ | 8,951 |  |  | $ | 7,785 |  |  | $ | 17,588 |  |  | $ | 17,275 |
Charge-offs, net of recoveries(1) | 23,908 |  |  | 28,359 |  |  | 41,046 |  |  | 66,176 |
Total |  |  |  |  |  |  |
Servicing fees collected | $ | 22,926 |  |  | $ | 23,972 |  |  | $ | 43,367 |  |  | $ | 44,100 |
Charge-offs, net of recoveries | 33,100 |  |  | 33,010 |  |  | 58,458 |  |  | 73,880 |
_____________________ (1)Student loan and personal loan charge-offs, net of recoveries, are impacted by the timing of charge-off sales performed on behalf of the purchasers of our loans, which lower the net amount disclosed.

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- Definition The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 30 -Section 50 -Paragraph 1A -Subparagraph (c)(3) -URI 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