5. Finance Receivables Held for Sale

During the first quarter of 2013, we did not have any transfer activity between finance receivables held for investment to finance receivables held for sale.

During the first quarter of 2012, we transferred $77.8 million of finance receivables from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. We marked these loans to the lower of cost or fair value at the time of transfer and subsequently recorded additional losses in other revenues at the time of sale resulting in net losses for the three months ended March 31, 2012 of $1.9 million. During the three months ended March 31, 2012, we sold finance receivables held for sale totaling $44.6 million.

We repurchased 15 loans for $2.3 million during the three months ended March 31, 2013, compared to one loan repurchased for $0.1 million during the three months ended March 31, 2012. In each period, we repurchased the loans because such loans were reaching the defined delinquency limits or had breached the contractual representations and warranties under the loan sale agreements. At March 31, 2013, there were no material unresolved recourse requests.

The activity in our reserve for sales recourse obligations was as follows:

(dollars in thousands)
At or for the Three Months Ended March 31,	2013			2012

Balance at beginning of period	$	4,863		$	1,648
Provision for recourse obligations	322			117
Recourse losses	(386		)	-
Balance at end of period	$	4,799		$	1,765