4. Advances and Other Receivables, Net

Advances and other receivables, net consists of the following:



Advances and Other Receivables, Net	March 31, 2020			December 31, 2019
Servicing advances, net of $125 and $131 discount, respectively	$	688		$	970
Receivables from agencies, investors and prior servicers, net of $21 and $21 discount, respectively	190			193
Reserves	(193		)	(175		)
Total advances and other receivables, net	$	685		$	988

The Company, as loan servicer, is contractually responsible to advance funds on behalf of the borrower and investor primarily for loan principal and interest, property taxes and hazard insurance and foreclosure costs. Advances are primarily recovered through reimbursement from the investor, proceeds from sale of loan collateral or mortgage insurance claims or the borrower. Reserves for advances and other receivables on loans liquidated or purchased out of the MSR portfolio are established within advances and other receivables.

The following table sets forth the activities of the servicing reserves for advances and other receivables:



Reserves for Advances and Other Receivables	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019
Balance - beginning of period	$	168		$	47
Provision and other additions⁽¹⁾	30			30
Write-offs	(5		)	(6		)
Balance - end of period	$	193		$	71

⁽¹⁾

The Company recorded a provision of $10 and $11 through the MTM adjustments in revenues - service related, net, in the consolidated statements of operations for the three months ended March 31, 2020 and 2019, respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate.

Purchase Discount for Advances and Other Receivables

In connection with the acquisition of Pacific Union in February 2019, the Company recorded the acquired advances and other receivables at estimated fair value as of the acquisition date, which resulted in a purchase discount of $19. Refer to Note 2, Acquisitions, for discussion of the Pacific Union acquisition. In 2018, the Company recorded the acquired advances and other receivables in connection with the Merger at estimated fair value as of the acquisition date, which resulted in a purchase discount of $302.

As of March 31, 2020, a total of $175 purchase discount has been utilized, with $146 purchase discount remaining.

The following table sets forth the activities of the purchase discounts for advances and other receivables:



	Three Months Ended March 31, 2020					Three Months Ended March 31, 2019
Purchase Discounts	Servicing Advances			Receivables from Agencies, Investors and Prior Servicers		Servicing Advances			Receivables from Agencies, Investors and Prior Servicers
Balance - beginning of period	$	131		$	21	$	205		$	48
Addition from acquisition	—			—		19			—
Utilization of purchase discounts	(6		)	—		(55		)	—
Balance - end of period	$	125		$	21	$	169		$	48

Credit Loss for Advances and Other Receivables

As described in Note 1, Nature of Business and Basis of Presentation, advances and other receivables are within the scope of ASU 2016-13, and the Company modified its accounting policy regarding its assessment of reserves for credit-related losses in accordance with CECL framework. Upon applying ASU 2016-13, the Company reduced its reserve for credit-related losses by $7 as of January 1, 2020. During the three months ended March 31, 2020, the Company increased the CECL reserve by $6. As of March 31, 2020, the total CECL reserve was $23.

Based upon the Company’s application of ASU 2016-13, the Company determined that the credit-related risk associated with applicable financial instruments typically increase with the passage of time. The CECL reserve methodology considers these financial instruments collectible to a point in time of 39 months. Any projected remaining balance at the end of the collection period is considered a loss and factors into the overall CECL loss rate required.