SERVICING	6 Months Ended
Jun. 30, 2020
Loans and Other Servicing Accounts
Servicing
Servicing	NOTE 5—SERVICING The total unpaid principal balance of loans the Company was servicing for various institutional investors was $100.0 billion as of June 30, 2020 compared to $93.2 billion as of December 31, 2019. As of June 30, 2020 and December 31, 2019, custodial escrow accounts relating to loans serviced by the Company totaled $2.3 billion and $2.6 billion, respectively. These amounts are not included in the accompanying Condensed Consolidated Balance Sheets as such amounts are not Company assets. Certain cash deposits associated with the escrow accounts at other financial institutions exceed the Federal Deposit Insurance Corporation insured limits. The Company places these deposits with financial institutions that meet the requirements of the Agencies and where it believes the risk of loss to be minimal. For most loans we service under the Fannie Mae DUS program, we are required to advance the principal and interest payments and guarantee fees for up to four months should a borrower cease making payments under the terms of their loan, including while that loan is in forbearance. After advancing for four months, we request reimbursement by Fannie Mae for the principal and interest advances, and Fannie Mae will reimburse us within 60 days of the request. As of June 30, 2020, the Company had advances of $1.1 million related to loans in our Fannie Mae portfolio. The Company has borrowing capacity, as more fully described in NOTE 6, to fund these advances. The Company had an immaterial amount of borrowings related to advances on the Fannie Mae DUS portfolio as of June 30, 2020. For loans we service under the Ginnie Mae (“HUD”) program, we are obligated to advance the principal and interest payments and guarantee fees until the HUD loan is brought current, fully paid, or assigned to HUD. We are eligible to assign a loan to HUD once it is in default for 30 days. If the loan is not brought current, or the loan otherwise defaults, we are not reimbursed for our advances until such time as we assign the loan to HUD or work out a payment modification for the borrower. For loans in default, we may repurchase those loans out of the Ginnie Mae security, at which time our advance requirements cease and we may then modify and resell the loan or assign the loan back to HUD, at which time we will be reimbursed for our advances. As of June 30, 2020, the Company had advances of $4.8 million for loans in our HUD portfolio. We are not obligated to make advances on any of the other loans we service in our portfolio, including loans we service under the Freddie Mac Optigo program. As of June 30, 2020 and December 31, 2019, the Company had $5.9 million and $2.1 million of aggregate outstanding principal and interest and tax and escrow advances, respectively. These advances are included as a component of Receivables, net in the Condensed Consolidated Balance Sheets.

SERVICING

6 Months Ended

Jun. 30, 2020

NOTE 5—SERVICING

The total unpaid principal balance of loans the Company was servicing for various institutional investors was $100.0 billion as of June 30, 2020 compared to $93.2 billion as of December 31, 2019.

As of June 30, 2020 and December 31, 2019, custodial escrow accounts relating to loans serviced by the Company totaled $2.3 billion and $2.6 billion, respectively. These amounts are not included in the accompanying Condensed Consolidated Balance Sheets as such amounts

are not Company assets. Certain cash deposits associated with the escrow accounts at other financial institutions exceed the Federal Deposit Insurance Corporation insured limits. The Company places these deposits with financial institutions that meet the requirements of the Agencies and where it believes the risk of loss to be minimal.

For most loans we service under the Fannie Mae DUS program, we are required to advance the principal and interest payments and guarantee fees for up to four months should a borrower cease making payments under the terms of their loan, including while that loan is in forbearance. After advancing for four months, we request reimbursement by Fannie Mae for the principal and interest advances, and Fannie Mae will reimburse us within 60 days of the request. As of June 30, 2020, the Company had advances of $1.1 million related to loans in our Fannie Mae portfolio. The Company has borrowing capacity, as more fully described in NOTE 6, to fund these advances. The Company had an immaterial amount of borrowings related to advances on the Fannie Mae DUS portfolio as of June 30, 2020.

For loans we service under the Ginnie Mae (“HUD”) program, we are obligated to advance the principal and interest payments and guarantee fees until the HUD loan is brought current, fully paid, or assigned to HUD. We are eligible to assign a loan to HUD once it is in default for 30 days. If the loan is not brought current, or the loan otherwise defaults, we are not reimbursed for our advances until such time as we assign the loan to HUD or work out a payment modification for the borrower. For loans in default, we may repurchase those loans out of the Ginnie Mae security, at which time our advance requirements cease and we may then modify and resell the loan or assign the loan back to HUD, at which time we will be reimbursed for our advances. As of June 30, 2020, the Company had advances of $4.8 million for loans in our HUD portfolio.

We are not obligated to make advances on any of the other loans we service in our portfolio, including loans we service under the Freddie Mac Optigo program.

As of June 30, 2020 and December 31, 2019, the Company had $5.9 million and $2.1 million of aggregate outstanding principal and interest and tax and escrow advances, respectively. These advances are included as a component of Receivables, net in the Condensed Consolidated Balance Sheets.