Annual report pursuant to Section 13 and 15(d)

ACCOUNTS AND NOTES RECEIVABLE, NET

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ACCOUNTS AND NOTES RECEIVABLE, NET
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
ACCOUNTS AND NOTES RECEIVABLE, NET ACCOUNTS AND NOTES RECEIVABLE, NET
Accounts and notes receivable consisted of the following at December 31, 2023 and 2022:
  2023 2022
Trust advances $ 44,487  $ 44,164 
Foreclosure advances, net 20,261  12,320 
Notes receivable
 10,627  — 
Other 9,981  1,820 
Total accounts and notes receivable, net
 $ 85,356  $ 58,304 
Management has established a foreclosure reserve for estimated uncollectible balances of the foreclosure and trust advances. Management believes that substantially all other accounts and interest receivable amounts are collectible and, accordingly, no allowance for credit loss is necessary.
The activity of the foreclosure loss reserve was as follows for the years ended December 31, 2023 and 2022:
  2023 2022
Balance — beginning of year $ 8,698  $ 10,355 
Utilization of foreclosure reserve (4,192) (1,957)
Provision for foreclosure losses
 1,188  300 
Balance — end of year $ 5,694  $ 8,698 
Note Receivable
In March 2023, the Company issued a note receivable to CCM in the amount of $11.3 million in connection with the acquisition of CCM, which closed in April 2023. The Company recognized a discount on the note receivable of approximately $1.3 million on the date the acquisition closed. The note bears interest at a variable rate tied to the Secured Overnight Financing Rate (“SOFR”) plus an applicable margin. Also, pursuant to the acquisition, CCM will be entitled to earn-out payments for four years based on certain performance criteria. The earn-out payments will be first allocated to repay the interest and principal due on the note receivable. The note receivable matures in April 2027. If an earn-out payment is not due to CCM, 50% of the interest payment may be “paid-in-kind,” and thereby added to the principal balance.