Note 6 – Advances



	March 31, 2020			December 31, 2019
Principal and interest	$	426,308		$	414,846
Taxes and insurance	383,829			422,383
Foreclosures, bankruptcy, REO and other	222,043			229,219
	1,032,180			1,066,448
Allowance for losses	(7,373		)	(9,925		)
Advances, net	$	1,024,807		$	1,056,523

The following table summarizes the activity in net advances:



	Three Months Ended March 31,
	2020			2019
Beginning balance	$	1,056,523		$	1,186,676
New advances	243,545			105,995
Sales of advances	(228		)	(707		)
Collections of advances and other	(277,585		)	(198,008		)
Net decrease in allowance for losses (1)	2,552			124
Ending balance	$	1,024,807		$	1,094,080

(1)

As disclosed in Note 1, there was no significant adjustment as of January 1, 2020 as a result of the adoption of ASU 2016-13. Servicing advances are generally expected to be fully reimbursed under the terms of the servicing agreements. The estimate for the allowance for losses is based on relevant qualitative and quantitative information about past events, including historical collection and loss experience, current conditions, and reasonable and supportable forecasts that affect collectability. The allowance for losses includes an estimate for claimable (with investors) but nonrecoverable expenses, for example due to servicer error, such as lack of reasonable documentation as to the type and amount of advances.



Allowance for Losses	Three Months Ended March 31,
	2020			2019
Beginning balance	$	9,925		$	23,259
Provision (reversal)	(761		)	1,762
Net charge-offs and other	(1,791		)	(1,886		)
Ending balance (1)	$	7,373		$	23,135


(1)	$18.0 million allowance related to sold advances was reclassified in the third quarter of 2019 and presented as Other liabilities (Liability for indemnification obligations).