The table below summarizes the changes in credit loss reserves for real estate secured receivables held for investment and the related receivable balance during the three and six months ended June 30, 2016.



	Real Estate Secured
	First Lien			Second Lien			Total
	(in millions)
Three Months Ended June 30, 2016:
Credit loss reserve rollforward:
Credit loss reserve balances at beginning of period	$	109		$	163		$	272
Provision for credit losses⁽¹⁾	9			3			12
Net charge-offs:
Charge-offs⁽¹⁾⁽²⁾	(16		)	(16		)	(32		)
Recoveries	—			2			2
Total net charge-offs	(16		)	(14		)	(30		)
Credit loss reserve balance at end of period	$	102		$	152		$	254

Six Months Ended June 30, 2016:
Credit loss reserve rollforward:
Credit loss reserve balance at beginning of period	$	137		$	174		$	311
Provision for credit losses⁽¹⁾	32			17			49
Net charge-offs:
Charge-offs⁽¹⁾⁽²⁾	(69		)	(42		)	(111		)
Recoveries	2			3			5
Total net charge-offs	(67		)	(39		)	(106		)
Credit loss reserve balance at end of period	$	102		$	152		$	254

Reserve components:
Collectively evaluated for impairment	$	35		$	27		$	62
Individually evaluated for impairment⁽³⁾	57			125			182
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell	10			—			10
Total credit loss reserves	$	102		$	152		$	254

Receivables held for investment:
Collectively evaluated for impairment	$	5,735		$	1,048		$	6,783
Individually evaluated for impairment⁽³⁾	511			598			1,109
Receivables carried at the lower of amortized cost or fair value of the collateral less cost to sell	240			28			268
Total receivables held for investment	$	6,486		$	1,674		$	8,160

⁽¹⁾

The provision for credit losses and charge-offs for real estate secured receivables during the three and six months ended June 30, 2016 included $6 million and$19 million, respectively, related to the initial lower of amortized cost or fair value adjustment attributable to credit factors for receivables transferred to held for sale. See Note 2, "Receivables Held for Sale," for additional information.

⁽²⁾

For collateral dependent receivables that were transferred to held for sale, existing credit loss reserves at the time of transfer were recognized as a charge-off. We transferred to held for sale certain real estate secured receivables during the three and six months ended June 30, 2016 and, accordingly, we recognized the existing credit loss reserves on these receivables as additional charge-off totaling $4 million and $24 million, respectively.

⁽³⁾

These amounts represent TDR Loans for which we evaluated reserves using a discounted cash flow methodology. Each loan was individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow impairment analysis was then applied to these groups of TDR Loans. The receivable balance above excluded TDR Loans held for investment that were carried at the lower of amortized cost or fair value of the collateral less cost to sell which totaled $213 million at June 30, 2016. The reserve component above excluded credit loss reserves totaling $9 million at June 30, 2016 for TDR Loans held for investment that were carried at the lower of amortized cost or fair value of the collateral less cost to sell.