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10. Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Schedule of reconciliation of the finance receivables measured at fair value on a recurring basis

The table below presents a reconciliation of the finance receivables measured at fair value on a recurring basis using significant unobservable inputs:

 

    Three Months Ended  
    March 31,  
    2018     2017  
    (In thousands)  
Balance at beginning of period   $ –     $ –  
Finance receivables at fair value acquired during period     212,610       –  
Payments on finance receivables at fair value     (6,271 )     –  
Interest income on finance receivables at fair value     3,508       –  
Mark to fair value     –       –  
Balance at end of period   $ 209,847     $ –
Schedule of finance receivables to their contractual balances

The table below compares the fair values of these finance receivables to their contractual balances for the periods shown:

 

    As of March 31, 2018     As of December 31, 2017  
    Contractual     Fair     Contractual     Fair  
    Balance     Value     Balance     Value  
    (In thousands)  
                                 
Finance receivables measured at fair value   $ 207,952     $ 209,847     $ –     $ –  
Schedule of level 3 fair value measurements

The following table provides certain qualitative information about our level 3 fair value measurements:

 

Financial Instrument   Fair Values as of         Inputs as of
    March 31,     December 31,     Unobservable   March 31,   December 31,
    2018     2017     Inputs   2018   2017
    (In thousands)              
Assets:                        
Finance receivables measured at fair value   $ 209,847     $ –     Discount rate   10.2% - 10.7%   n/a
                    Cumulative net losses   16.0%   n/a
Schedule of estimated fair values of financial assets and liabilities

The estimated fair values of financial assets and liabilities at March 31, 2018 and December 31, 2017, were as follows:

  

    As of March 31, 2018  
Financial Instrument   (In thousands)  
    Carrying     Fair Value Measurements Using:        
    Value     Level 1     Level 2     Level 3     Total  
Assets:                              
Cash and cash equivalents   $ 11,573     $ 11,573     $ –     $ –     $ 11,573  
Restricted cash and equivalents     130,798       130,798       –       –       130,798  
Finance receivables, net     1,991,031       –       –       2,104,430       2,104,430  
Finance receivables measured at fair value     209,847       –       –       209,847       209,847  
Accrued interest receivable     39,077       –       –       39,077       39,077  
Liabilities:                                        
Warehouse lines of credit   $ 121,666     $ –     $ –     $ 121,666     $ 121,666  
Accrued interest payable.     4,409       –       –       4,409       4,409  
Securitization trust debt     2,080,070       –       –       2,079,770       2,079,770  
Subordinated renewable notes     16,348       –       –       16,348       16,348  

 

    As of December 31, 2017  
Financial Instrument   (In thousands)  
    Carrying     Fair Value Measurements Using:        
    Value     Level 1     Level 2     Level 3     Total  
Assets:                              
Cash and cash equivalents   $ 12,731     $ 12,731     $ –     $ –     $ 12,731  
Restricted cash and equivalents     111,965       111,965       –       –       111,965  
Finance receivables, net     2,195,797       –       –       2,171,846       2,171,846  
Accrued interest receivable     46,753       –       –       46,753       46,753  
Liabilities:                                        
Warehouse lines of credit   $ 112,408     $ –     $ –     $ 112,408     $ 112,408  
Accrued interest payable     4,212       –       –       4,212       4,212  
Securitization trust debt     2,083,215       –       –       2,089,678       2,089,678  
Subordinated renewable notes     16,566       –       –       16,566       16,566