Annual report pursuant to Section 13 and 15(d)

INVESTOR RESERVES

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INVESTOR RESERVES
 12 Months Ended
Dec. 31, 2023
Investor Reserves [Abstract]  
INVESTOR RESERVES INVESTOR RESERVES
The Company’s estimate of the investor reserves considers the current macro-economic environment and recent repurchase trends; however, if the Company experiences a prolonged period of higher repurchase and indemnification activity, then the realized losses from loan repurchases and indemnifications may ultimately be in excess of the liability. The maximum exposure under the Company’s representations and warranties would be the outstanding principal balance and any premium received on all loans ever sold by the Company, less any loans that have already been paid in full by the mortgagee, that have defaulted without a breach of representations and warranties, that have been indemnified via settlement or make-whole, or that have been repurchased. Additionally, the Company may receive relief of certain representations and warranty obligations on loans sold to FNMA or FHLMC on or after January 1, 2013 if FNMA or FHLMC satisfactorily concludes a quality control loan file review or if the borrower meets certain acceptable payment history requirements within 12 or 36 months after the loan is sold to FNMA or FHLMC.
The activity of the investor reserves was as follows for the years ended December 31, 2023 and 2022:
2023 2022
Balance — beginning of year $ 16,094  $ 18,437 
Benefit from investor reserves (4,796) (9,219)
Provision for investor reserves 8,675  6,876 
Balance — end of year $ 19,973  $ 16,094