Quarterly report pursuant to Section 13 or 15(d)

ACCOUNTS, NOTES AND INTEREST RECEIVABLE

v3.23.3
ACCOUNTS, NOTES AND INTEREST RECEIVABLE
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
ACCOUNTS, NOTES AND INTEREST RECEIVABLE ACCOUNTS, NOTES AND INTEREST RECEIVABLE
Accounts, notes and interest receivable consisted of the following:
  September 30, 2023 December 31, 2022
Trust advances $ 20,814  $ 44,164 
Foreclosure advances, net 18,669  12,320 
Receivables related to loan sales 2,316  562 
Notes receivable and advances 16,604  — 
Accrued interest - notes receivable 512  — 
Other 4,734  1,258 
Total accounts, notes and interest receivable $ 63,649  $ 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, notes and interest receivable amounts are collectible and, accordingly, no allowance for doubtful accounts is necessary.
The activity of the foreclosure loss reserve was as follows:
Three Months Ended September 30, Nine Months Ended
September 30,
  2023 2022 2023 2022
Balance — beginning of period $ 6,659  $ 10,997  $ 8,698  $ 10,355 
Utilization of foreclosure reserve (549) (603) (3,058) (1,436)
Provision for (reversal of) foreclosure losses 84  (3,449) 554  (1,974)
Balance — end of period $ 6,194  $ 6,945  $ 6,194  $ 6,945 
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.