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Advances and Other Receivables, Net | 9 Months Ended
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Sep. 30, 2019
Receivables [Abstract] |
Advances and Other Receivables, Net | 4. Advances and Other Receivables, Net Advances and other receivables, net consists of the following.
| Successor
| September 30, 2019 |  | December 31, 2018
Servicing advances, net of $148 and $205 discount, respectively | $ | 865 |  |  | $ | 1,000 |
Receivables from agencies, investors and prior servicers, net of $48 and $48 discount, respectively | 232 |  |  | 241 |
Reserves | (130 | ) |  | (47 | )
Total advances and other receivables, net | $ | 967 |  |  | $ | 1,194 |
The Company, as loan servicer, is contractually responsible to advance funds on behalf of the borrower and investor primarily for loan principal and interest, property taxes and hazard insurance and foreclosure costs. Advances are primarily recovered through reimbursement from the investor, proceeds from sale of loan collateral or mortgage insurance claims. Reserves for advances and other receivables on loans transferred out of the MSR portfolio are established within advances and other receivables. The Company estimates and records an asset for estimated recoveries to be collected from prior servicers for their respective portion of the losses associated with the underlying loans that were not serviced in accordance with established guidelines. Receivables from prior servicers totaled $101 and $94 for the Company’s forward loan portfolio at September 30, 2019 and December 31, 2018, respectively. The following table sets forth the activities of the servicing reserves for advances and other receivables.
| Successor |  |  | Predecessor
Reserves for Advances and Other Receivables | Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019 |  | Two Months Ended September 30, 2018 |  |  | One Month Ended July 31, 2018 |  | Seven Months Ended July 31, 2018
Balance - beginning of period | $ | 98 |  |  | $ | 47 |  |  | $ | — |  |  |  | $ | 294 |  |  | $ | 284 |
Provision and other additions(1) | 35 |  |  | 102 |  |  | 20 |  |  |  | 7 |  |  | 69 |
Write-offs | (3 | ) |  | (19 | ) |  | — |  |  |  | (4 | ) |  | (56 | )
Balance - end of period | $ | 130 |  |  | $ | 130 |  |  | $ | 20 |  |  |  | $ | 297 |  |  | $ | 297 |
(1) | The Company recorded a provision of $18, $46, and $13 through the MTM adjustments in service related revenues for the three and nine months ended September 30, 2019, and two months ended September 30, 2018, respectively. The Predecessor recorded a provision of $4 and $38 through the MTM adjustments in service related revenues for the one and seven months ended July 31, 2018, 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 In connection with the acquisition of Pacific Union in February 2019, the Company recorded the acquired advances and other receivables at estimated fair value as of the acquisition date, which resulted in a purchase discount of $19. Refer to Note 2, Acquisitions for discussion of the Pacific Union acquisition. In 2018, the Company recorded the acquired advances and other receivables in connection with the Merger at estimated fair value as of the acquisition date, which resulted in a purchase discount of $302. As of September 30, 2019, a total of $125 purchase discount has been utilized, with $196 purchase discount remaining. The following table sets forth the activities of the purchase discounts for advances and other receivables.
| Successor
Purchase Discounts - Servicing Advances | Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019 |  | Two Months Ended September 30, 2018
Balance - beginning of period | $ | 156 |  |  | $ | 205 |  |  | $ | 246 |
Addition from acquisition | — |  |  | 19 |  |  | — |
Utilization of purchase discounts | (8 | ) |  | (76 | ) |  | (19 | )
Balance - end of period | $ | 148 |  |  | $ | 148 |  |  | $ | 227 |
| Successor
Purchase Discounts - Receivables from Agencies, Investors and Prior Servicers | Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019 |  | Two Months Ended September 30, 2018
Balance - beginning of period | $ | 48 |  |  | $ | 48 |  |  | $ | 56 |
Addition from acquisition | — |  |  | — |  |  | — |
Utilization of purchase discounts | — |  |  | — |  |  | — |
Balance - end of period | $ | 48 |  |  | $ | 48 |  |  | $ | 56 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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- References No definition available. + Details
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