The following table presents the composition of servicing advances by type: | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | Principal and interest | $ | 82.1 | | | $ | 98.9 | | | Taxes and insurance | 174.9 | | | 278.8 | | Foreclosures, bankruptcy, REO and other (1) | 121.4 | | | 110.2 | | | Total advances, before allowance for losses | 378.4 | | | 487.9 | | | Allowance for losses | (3.3) | | | (4.5) | | Advances, net (2) | $ | 375.1 | | | $ | 483.4 | |
(1) As of September 30, 2026, New York was the only state that represented a balance exceeding 5% of the total advances (based on the underlying property location of the related mortgage loans), with $23.8 million. (2) As of September 30, 2026, there was one counterparty that represented a balance exceeding 5% of the total, with a balance of $34.4 million. Generally, unreimbursed advances may be recovered from principal and interest collections or advance recoveries. The following table presents the composition of servicing advances by investor: | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | GSE | $ | 42.6 | | | $ | 82.2 | | Ginnie Mae | 59.9 | | | 63.3 | | Non-Agency | 272.6 | | | 337.9 | | | Advances, net | $ | 375.1 | | | $ | 483.4 | |
The following table summarizes the activity in net advances: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Beginning balance - before Allowance for Losses | $ | 372.8 | | | $ | 467.8 | | | $ | 487.9 | | | $ | 584.6 | | | | | | | | | | | | | | | | | | | New advances | 282.9 | | | 225.7 | | | 798.6 | | | 621.4 | | Transfer from (to) Receivables | 4.1 | | | — | | | 9.4 | | | (0.2) | | | | | | | | | | | | | | | | | | | Sales of advances | (0.4) | | | (0.3) | | | (1.3) | | | (1.0) | | | Acquisition of advances in connection with the purchase of MSRs | — | | | 0.6 | | | 6.2 | | | 4.0 | | Transfer to Loans held for sale (incl. capitalization upon Ginnie Mae modifications) | (5.6) | | | (5.5) | | | (17.3) | | | (15.7) | | Collections of advances and other | (275.4) | | | (247.7) | | | (905.1) | | | (752.4) | | | | | | | | | | | | | | | | | | | Ending balance - before Allowance for Losses | 378.4 | | | 440.7 | | | 378.4 | | | 440.7 | | | | | | | | | | | Beginning balance - Allowance for Losses | (3.3) | | | (6.4) | | | (4.5) | | | (7.4) | | | Provision expense | (1.3) | | | (1.5) | | | (3.3) | | | (4.5) | | | Net charge-offs and other | 1.3 | | | 2.3 | | | 4.5 | | | 6.4 | | | Ending balance - Allowance for Losses | (3.3) | | | (5.6) | | | (3.3) | | | (5.6) | | | | | | | | | | | Ending balance, net | $ | 375.1 | | | $ | 435.1 | | | $ | 375.1 | | | $ | 435.1 | |
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