The table below summarizes the changes in credit loss reserves for real estate secured receivables held for investment during the three and nine months ended September 30, 2016.



	Real Estate Secured
	First Lien			Second Lien			Total
	(in millions)
Three Months Ended September 30, 2016:
Credit loss reserve rollforward:
Credit loss reserve balances at beginning of period	$	102		$	152		$	254
Provision for credit losses⁽¹⁾	75			497			572
Net charge-offs:
Charge-offs⁽¹⁾⁽²⁾	(178		)	(649		)	(827		)
Recoveries	1			—			1
Total net charge-offs	(177		)	(649		)	(826		)
Credit loss reserve balance at end of period	$	—		$	—		$	—

Nine Months Ended September 30, 2016:
Credit loss reserve rollforward:
Credit loss reserve balance at beginning of period	$	137		$	174		$	311
Provision for credit losses⁽¹⁾	107			514			621
Net charge-offs:
Charge-offs⁽¹⁾⁽²⁾	(247		)	(691		)	(938		)
Recoveries	3			3			6
Total net charge-offs	(244		)	(688		)	(932		)
Credit loss reserve balance at end of period	$	—		$	—		$	—

⁽¹⁾

The provision for credit losses and charge-offs for real estate secured receivables during the three and nine months ended September 30, 2016 included $557 million and $576 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 nine months ended September 30, 2016 and, accordingly, we recognized the existing credit loss reserves on these receivables as additional charge-off totaling $244 million and $268 million, respectively.