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Advances and Other Receivables | 9 Months Ended
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Sep. 30, 2024
Receivables [Abstract] |
Advances and Other Receivables | 4. Advances and Other Receivables Advances and other receivables, net, consists of the following:
Advances and Other Receivables, Net | September 30, 2024 |  | December 31, 2023
Servicing advances, net of $7 and $13 purchase discount | $ | 1,012 |  |  | $ | 1,065 |
Receivables from agencies, investors and prior servicers, net of zero and $6 purchase discount | 43 |  |  | 101 |
Reserves | (115) |  |  | (170) |
Total advances and other receivables, net | $ | 940 |  |  | $ | 996 |
The following table sets forth the activities of the servicing reserves for advances and other receivables:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
Reserves for Advances and Other Receivables | 2024 |  | 2023 |  | 2024 |  | 2023
Balance - beginning of period | $ | 149 |  |  | $ | 156 |  |  | $ | 170 |  |  | $ | 137 |
Provision(1) | 8 |  |  | 8 |  |  | 19 |  |  | 26 |
Reclassifications(2) | 6 |  |  | 11 |  |  | 23 |  |  | 27 |
Write-offs(3) | (48) |  |  | (11) |  |  | (97) |  |  | (26) |
Balance - end of period | $ | 115 |  |  | $ | 164 |  |  | $ | 115 |  |  | $ | 164 |
(1)The Company recorded a provision of $5 and $8 through the MTM adjustments in “revenues - service related, net” in the condensed consolidated statements of operations during the three months ended September 30, 2024 and 2023, respectively and a provision of $17 and $26 during the nine months ended September 30, 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 tables set forth the activities of the purchase discounts for advances and other receivables:
| Three Months Ended September 30,
| 2024 |  | 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 period | $ | 12 |  |  | $ | — |  |  | $ | 9 |  |  | $ | 7 |
Additions | — |  |  | — |  |  | 4 |  |  | — |
Utilization of purchase discounts | (5) |  |  | — |  |  | (1) |  |  | — |
Balance - end of period | $ | 7 |  |  | $ | — |  |  | $ | 12 |  |  | $ | 7 |
| Nine Months Ended September 30,
| 2024 |  | 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 period | $ | 13 |  |  | $ | 6 |  |  | $ | 12 |  |  | $ | 7 |
Additions | — |  |  | — |  |  | 4 |  |  | — |
Utilization of purchase discounts | (6) |  |  | (6) |  |  | (4) |  |  | — |
Balance - end of period | $ | 7 |  |  | $ | — |  |  | $ | 12 |  |  | $ | 7 |
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 September 30, |  | Nine Months Ended September 30,
CECL Allowance for Advances and Other Receivables | 2024 |  | 2023 |  | 2024 |  | 2023
Balance - beginning of period | $ | 19 |  |  | $ | 37 |  |  | $ | 35 |  |  | $ | 36 |
Provision | 1 |  |  | (1) |  |  | 4 |  |  | — |
Write-offs(1) | (2) |  |  | — |  |  | (21) |  |  | — |
Balance - end of period(2) | $ | 18 |  |  | $ | 36 |  |  | $ | 18 |  |  | $ | 36 |
(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 September 30, 2024, $18 was recorded in reserves. As of September 30, 2023, $29 and $7 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 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.

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- Definition The entire disclosure for claims held for amounts due to 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 -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details
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