11. Payables and Other Liabilities

Payables and other liabilities consist of the following:



Payables and other liabilities	March 31, 2020		December 31, 2019
Loans subject to repurchase right from Ginnie Mae	$	468	$	560
Payables to servicing and subservicing investors	407		423
Derivative financial instruments	223		15
Payable to GSEs and securitized trusts	148		182
Operating lease liabilities	125		135
Other liabilities	594		701
Total payables and other liabilities	$	1,965	$	2,016

Loans Subject to Repurchase Right from Ginnie Mae

See Note 8, Other Assets, for a description of assets and liabilities related to loans subject to repurchase right from Ginnie Mae.

Payables to Servicing and Subservicing Investors and Payables to GSEs and Securitized Trusts

Payables to servicing and subservicing investors, GSEs and securitized trusts represent amounts due to investors, GSEs and securitized trusts in connection with loans serviced that are paid from collections of the underlying loans, insurance proceeds or proceeds from property disposal.

Derivative Financial Instruments

See Note 9, Derivative Financial Instruments, for further details on derivative financial instruments.

Operating Lease Liabilities

See Note 7, Leases, for further details on operating lease liabilities.

MSR Purchases Payable Including Advances

MSR purchases payable including advances represents the amounts owed to the seller in connection with the purchase of MSRs.

Other Liabilities

Other liabilities primarily include accrued bonus and payroll, accrued interest, accrued legal expenses, payables to insurance carriers and insurance cancellation reserves, repurchase reserves, accounts payable and other accrued liabilities. Payables to insurance carriers and insurance cancellation reserves consist of insurance premiums received from borrower payments awaiting disbursement to the insurance carrier and/or amounts due to third-party investors on liquidated loans.

The following table sets forth the activities of the repurchase reserves:



Repurchase Reserves	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019
Balance - beginning of period	$	25		$	8
Provisions	5			8
Releases	(1		)	—
Balance - end of period	$	29		$	16

The provision for repurchases represents an estimate of losses to be incurred on the repurchase of loans or indemnification of purchaser’s losses related to forward loans. Certain sale contracts and GSE standards require the Company to repurchase a loan or indemnify the purchaser or insurer for losses if a borrower fails to make initial loan payments or if the accompanying mortgage loan fails to meet certain customary representations and warranties with respect to underwriting standards.

The Company regularly evaluates the adequacy of repurchase reserves based on trends in repurchase and indemnification requests, actual loss experience, settlement negotiation, estimated future loss exposure and other relevant factors including economic conditions. Current loss rates have significantly declined attributable to stronger underwriting standards and due to the falloff of loans underwritten prior to the mortgage loan crisis period prior to 2008. The Company believes its reserve balance as of March 31, 2020 is sufficient to cover loss exposure associated with repurchase contingencies.