Loans and finance receivables

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Loans and finance receivables

(7) Loans and finance receivables

Loans and finance receivables are summarized as follows (in millions).

	December 31,
	2019			2018
Loans and finance receivables before allowances and discounts	$	18,199		$	16,962
Allowances for uncollectible loans		(167	)		(177	)
Unamortized acquisition discounts and points		(505	)		(505	)
	$	17,527		$	16,280

Loans and finance receivables are predominantly installment loans originated or acquired by our manufactured housing business. Provisions for loan losses for 2019 and 2018 were $125 million and $141 million, respectively. Loan charge-offs, net of recoveries, were $135 million in 2019 and $144 million in 2018. At December 31, 2019, approximately 98% of the manufactured housing loan balances were evaluated collectively for impairment, with the remainder evaluated individually. As part of the evaluation process, credit quality indicators are reviewed and loans are designated as performing or non-performing. At December 31, 2019, we considered approximately 99% of the loan balances to be performing and approximately 96% of the loan balances to be current as to payment status.

Additionally, in 2018, we entered into an agreement with Seritage Growth Properties to provide a $2.0 billion term loan facility, which matures on July 31, 2023. As of December 31, 2019, the outstanding loans under the facility were approximately $1.6 billion.