Advances

9 Months Ended

Sep. 30, 2022


Note 6 – Advances


	September 30, 2022		December 31, 2021
Principal and interest	$	224,684	$	228,041
Taxes and insurance	279,502		381,025
Foreclosures, bankruptcy, REO and other	144,473		170,385
	648,660		779,451
Allowance for losses	(6,199)		(7,018)
Advances, net	$	642,461	$	772,433

The following table summarizes the activity in net advances:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Beginning balance - before Allowance for Losses	$	653,768	$	768,864	$	779,451	$	834,512
Acquisition of advances in connection with the purchase of MSRs	—		—		—		4,495


New advances	153,193		181,567		540,467		565,284
Sales of advances	(1,643)		(80)		(2,473)		(328)
Collections of advances and other (1)	(156,658)		(204,078)		(668,785)		(657,690)


Ending balance - before Allowance for Losses	648,660		746,273		648,660		746,273

Beginning balance - Allowance for Losses	$	(6,601)	$	(6,891)	$	(7,018)	$	(6,273)
Provision expense	(1,965)		(1,581)		(5,841)		(5,478)
Net charge-offs and other	2,368		1,795		6,661		5,074
Ending balance - Allowance for Losses	(6,199)		(6,677)		(6,199)		(6,677)

Ending balance, net	$	642,461	$	739,596	$	642,461	$	739,596

(1) Activity for the nine months ended September 30, 2022 includes $22.6 million tax, insurance and other advances transferred during the three months ended June 30, 2022 on the repurchase of certain delinquent and aged loans in connection with the Ginnie Mae EBO program. See Note 4 – Loans Held for Sale.