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Advances and Other Receivables | 12 Months Ended
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Dec. 31, 2020
Receivables [Abstract] |
Advances and Other Receivables | 4. Advances and Other Receivables Advances and other receivables, net consists of the following:
| Successor
Advances and Other Receivables, Net | December 31, 2020 |  | December 31, 2019
Servicing advances, net of $72 and $131 purchase discount, respectively | $ | 975 |  |  | $ | 970 |
Receivables from agencies, investors and prior servicers, net o f $21 and $21 purchase discount, respectively | 173 |  |  | 193 |
Reserves | (208) |  |  | (175) |
Total advances and other receivables, net | $ | 940 |  |  | $ | 988 |
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, 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 following table sets forth the activities of the servicing reserves for advances and other receivables:
| Successor
| Year Ended December 31,
Reserves for Advances and Other Receivables | 2020 |  | 2019
Balance - beginning of year(1) | $ | 168 |  |  | $ | 47 |
Provision and other additions(2) | 108 |  |  | 160 |
Write-offs | (68) |  |  | (32) |
Balance - end of year | $ | 208 |  |  | $ | 175 |
(1)As described in Note 1, Nature of Business and Basis of Presentation, the Company recorded a transition adjustment of $7 to the advances and other receivables reserve as of January 1, 2020 for the cumulative effect of adopting ASU 2016-13. (2)The Company recorded a provision of $28 and $62 through the MTM adjustments in revenues - service related, net, in the consolidated statements of operations during the years ended December 31, 2020 and 2019, 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 previous acquisitions, the Company recorded the acquired advances and other receivables at estimated fair value as of the acquisition date, which resulted in a purchase discount. As of December 31, 2020, a total of $228 purchase discount has been utilized, with $93 purchase discount remaining. The following table sets forth the activities of the purchase discount for advances and other receivables:
| Successor
| Year Ended December 31, 2020 |  | Year Ended December 31, 2019
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 | $ | 131 |  |  | $ | 21 |  |  | $ | 205 |  |  | $ | 48 |
Addition from acquisition | — |  |  | — |  |  | 19 |  |  | — |
Utilization of purchase discounts | (59) |  |  | — |  |  | (93) |  |  | (27) |
Balance - end of year | $ | 72 |  |  | $ | 21 |  |  | $ | 131 |  |  | $ | 21 |
Credit Loss for Advances and Other Receivables As described in Note 1, Nature of Business and Basis of Presentation, advances and other receivables are within the scope of ASU 2016-13, and the Company modified its accounting policy regarding its assessment of reserves for credit-related losses in accord ance with CECL framework. During the year ended December 31, 2020, the Company increased the CECL reserve by $21. As of December 31, 2020, the total CECL reserve was $38, of which $21 and $17 was recorded in reserves and purchase discount for advances and other receivables, respectively. Based upon the Company’s application of ASU 2016-13, 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 o f 39 months. An y projected remaining balance at the end of the collection period is considered a loss and factors into the overall CECL loss rate required.

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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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