Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Beginning balance	$	71,634	$	57,168
Provisions for loss sharing	1,059		4,567
Provisions reversal for loan repayments	(13)		(1,390)
Recoveries (charge-offs), net	110		(588)
Ending balance	$	72,790	$	59,757

When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. A liability is recognized for the fair value of the guarantee obligation undertaken for the non-contingent aspect of the guarantee and is

removed only upon either the expiration or settlement of the guarantee. At March 31, 2024 and December 31, 2023, we had $34.7 million and $34.6 million, respectively, of guarantee obligations included in the allowance for loss-sharing obligations.

In addition to and separately from the fair value of the guarantee, we estimate our allowance for loss-sharing under CECL over the contractual period in which we are exposed to credit risk. The current expected loss related to loss-sharing was based on a collective pooling basis with similar risk characteristics, a reasonable and supportable forecast and a reversion period based on our average historical losses through the remaining contractual term of the portfolio.

When we settle a loss under the DUS loss-sharing model, the net loss is charged-off against the previously recorded loss-sharing obligation. The settled loss is often net of any previously advanced principal and interest payments in accordance with the DUS program, which are reflected as reductions to the proceeds needed to settle losses. At March 31, 2024 and December 31, 2023, we had outstanding advances of $1.0 million and $1.1 million, respectively, which were netted against the allowance for loss-sharing obligations.

At March 31, 2024 and December 31, 2023, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $38.1 million and $37.0 million, respectively, and represented 0.18% and 0.17%, respectively, of our Fannie Mae servicing portfolio. During the three months ended March 31, 2024 and 2023, we recorded an increase in CECL reserves of $1.1 million and $2.6 million, respectively.

At March 31, 2024 and December 31, 2023, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $4.02 billion and $3.95 billion, respectively. The maximum quantifiable liability is not representative of the actual loss we would incur. We would be liable for this amount only if all of the loans we service for Fannie Mae, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement.