Advances and Other Receivables

6 Months Ended

Jun. 30, 2022

4. Advances and Other Receivables

Advances and other receivables, net, consists of the following:


Advances and Other Receivables, Net	June 30, 2022		December 31, 2021
Servicing advances, net of $14 and $19 purchase discount, respectively	$	915	$	1,263
Receivables from agencies, investors and prior servicers, net of $8 and $12 purchase discount, respectively	127		132
Reserves	(150)		(167)
Total advances and other receivables, net	$	892	$	1,228

The following table sets forth the activities of the servicing reserves for advances and other receivables:


	Three Months Ended June 30,				Six Months Ended June 30,
Reserves for Advances and Other Receivables	2022		2021		2022		2021
Balance - beginning of period	$	152	$	206	$	167	$	208
Provision and other additions(1)	18		26		34		41
Write-offs	(20)		(41)		(51)		(58)
Balance - end of period	$	150	$	191	$	150	$	191

(1)The Company recorded a provision of $6 and $8 through the MTM adjustments in revenues - service related, net, in the condensed consolidated statements of operations during the three months ended June 30, 2022 and 2021, respectively, and $12 and $20 during the six months ended June 30, 2022 and 2021, respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate.

Purchase Discount for Advances and Other Receivables

The following tables set forth the activities of the purchase discounts for advances and other receivables:


	Three Months Ended June 30,
	2022				2021
Purchase Discount for Advances and Other Receivables	Servicing Advances		Receivables from Agencies, Investors and Prior Servicers		Servicing Advances		Receivables from Agencies, Investors and Prior Servicers
Balance - beginning of period	$	16	$	8	$	63	$	20
Utilization of purchase discounts	(2)		—		(37)		—

Balance - end of period	$	14	$	8	$	26	$	20


	Six Months Ended June 30,
	2022				2021
Purchase Discount for Advances and Other Receivables	Servicing Advances		Receivables from Agencies, Investors and Prior Servicers		Servicing Advances		Receivables from Agencies, Investors and Prior Servicers
Balance - beginning of period	$	19	$	12	$	72	$	21
Utilization of purchase discounts	(5)		(4)		(46)		(1)

Balance - end of period	$	14	$	8	$	26	$	20

Credit Loss for Advances and Other Receivables

During the three and six months ended June 30, 2022, the Company increased the current expected credit loss (“CECL”) reserve by $3 and $7, respectively. During the three and six months ended June 30, 2021, the Company increased the CECL reserve by $3 and $4, respectively. In addition, the Company had no write-offs during the three months ended June 30, 2022 and wrote off $5 of the CECL reserve during the six months ended June 30, 2022. As of June 30, 2022, the total CECL reserve was $33, of which $25 and $8 were recorded in reserves and purchase discount for advances and other receivables, respectively. As of June 30, 2021, the total CECL reserve was $42, of which $25 and $17 were recorded in reserves and purchase discount for advances and other receivables, respectively.

The Company determined that the credit-related risk associated with applicable financial instruments typically increase with the passage of time. The CECL reserve methodology considers these financial instruments collectible to a point in time of 39 months. Any projected remaining balance at the end of the collection period is considered a loss and factors into the overall CECL loss rate required.