Advances

6 Months Ended

Jun. 30, 2020

Note 6 – Advances



	June 30, 2020			December 31, 2019
Principal and interest	$	336,783		$	414,846
Taxes and insurance	356,092			422,383
Foreclosures, bankruptcy, REO and other	215,954			229,219
	908,829			1,066,448
Allowance for losses	(7,820		)	(9,925		)
Advances, net	$	901,009		$	1,056,523

The following table summarizes the activity in net advances:



	Six Months Ended June 30,
	2020			2019
Beginning balance	$	1,056,523		$	1,186,676
Asset acquisitions	—			688
New advances	469,028			254,000
Sales of advances	(454		)	(707		)
Collections of advances and other	(626,193		)	(331,764		)
Net decrease (increase) in allowance for losses (1)	2,105			(4,394		)
Ending balance	$	901,009		$	1,104,499


(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 June 30,					Six Months Ended June 30,
	2020			2019		2020			2019
Beginning balance	$	7,373		$	23,135	$	9,925		$	23,259
Provision	4,532			2,041		3,771			3,803
Net charge-offs and other	(4,085		)	2,477		(5,876		)	591
Ending balance (1)	$	7,820		$	27,653	$	7,820		$	27,653

(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).