Advances and Other Receivables

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Advances and Other Receivables

5. Advances and Other Receivables

Advances and other receivables, net consists of the following:

Advances and Other Receivables, Net	December 31, 2024		December 31, 2023
Servicing advances, net of $6 and $13 purchase discount, respectively	$	1,410	$	1,065
Receivables from agencies, investors and prior servicers, net of zero and $6 purchase discount, respectively	47		101
Reserves	(112)		(170)
Total advances and other receivables, net	$	1,345	$	996

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

	Year Ended December 31,
Reserves for Advances and Other Receivables	2024		2023
Balance - beginning of year	$	170	$	137
Provision, net(1)	24		40
Reclassifications(2)	24		27
Write-offs(3)	(106)		(34)
Balance - end of year	$	112	$	170

(1)The Company recorded a provision of $25 and $33 through the MTM adjustments in “revenues - service related, net” in the consolidated statements of operations during the years ended December 31, 2024 and 2023, respectively.

(2)Reclassifications represent required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate.

(3)Write-offs represent balances removed from the servicing platform during the respective periods, including fully reserved balances related to third-party settlements where further loss recovery of prior servicer errors is limited.

Purchase Discount for Advances and Other Receivables

The following table sets forth the activities of the purchase discount for advances and other receivables:

	Year Ended December 31, 2024				Year Ended December 31, 2023
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 year	$	13	$	6	$	12	$	7
Addition from acquisition(1)	—		—		5		—
Utilization of purchase discounts	(7)		(6)		(4)		(1)
Balance - end of year	$	6	$	—	$	13	$	6

(1)In connection with the acquisition of Home Point in 2023, the Company recorded the acquired advances and other receivables at estimate fair value as of the acquisition date, which resulted in a purchase discount of $5. Refer to Note 3, Acquisitions, for discussion of the Home Point acquisition.

Credit Loss for Advances and Other Receivables

The following table sets forth the activities of the CECL allowance for advances and other receivables:

	Year Ended December 31,
CECL Allowance for Advances and Other Receivables	2024		2023
Balance - beginning of year	$	35	$	36
Provision, net	(2)		1
Write-offs(1)	(20)		(2)
Balance - end of year(2)	$	13	$	35

(1)Write-offs represent balances removed from the servicing platform during the respective periods, including fully reserved balances related to third-party settlements where further loss recovery of prior servicer errors is limited.

(2)As of December 31, 2024, $13 was included in reserves. As of December 31, 2023, $29 and $6 were included in reserves and purchase discount, respectively.