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Advances and Other Receivables
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Advances and Other Receivables
4. Advances and Other Receivables

Advances and other receivables, net, consists of the following:
Advances and Other Receivables, NetJune 30, 2025December 31, 2024
Servicing advances, net of $5 and $6 purchase discount, respectively
$1,202 $1,410 
Receivables from agencies, investors and prior servicers38 47 
Reserves(116)(112)
Total advances and other receivables, net$1,124 $1,345 
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 Receivables2025202420252024
Balance - beginning of period$117 $144 $112 $170 
Provision(1)
22 (4)36 11 
Reclassifications(2)
(4)8 (5)17 
Write-offs(3)
(19)1 (27)(49)
Balance - end of period$116 $149 $116 $149 
(1)The Company recorded a provision of $10 and $6 through the MTM adjustments in “revenues - service related, net” in the condensed consolidated statements of operations during the three months ended June 30, 2025 and 2024, respectively and a provision of $16 and $12 during the six months ended June 30, 2025 and 2024, 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
Purchase discounts for servicing advances was $5 and $12 as of June 30, 2025 and 2024, respectively. There was immaterial utilization of purchase discounts during the three and six months ended June 30, 2025 and 2024.

Credit Loss for Advances and Other Receivables
The following table sets forth the activities of the CECL allowance for advances and other receivables:
Three Months Ended June 30,Six Months Ended June 30,
CECL Allowance for Advances and Other Receivables2025202420252024
Balance - beginning of period$12 $17 $13 $35 
Provision— 2 (1)3 
Write-offs(1)
(1)— (1)(19)
Balance - end of period(2)
$11 $19 $11 $19 

(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)Amounts were included in reserves.

The Company determined that the credit-related risk associated with applicable financial instruments typically increases 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.