Metro Mortgage Company has a loan portfolio with the following loans at December 31, 2020:

Prime conforming loans	$43 million
Pay-option ARM loans without accumulated negative amortization	$28 million
Subprime 80/20 loans	$17 million
Pay-option ARM loans with accumulated negative amortization	$9 million

Metro Mortgage wants to have an allowance for loan losses comprised of the following:

0.3 percent of prime conforming loans

7.0 percent of subprime 80/20 loans

0.8 percent of pay-option ARM loans without negative amortization

12 percent of pay-option ARM loans with negative amortization

Compute the required balance for the allowance of loan losses at December 31, 2020.