Note 21 – Other Asset and Other Liabilities

The following table details the Company’s other assets and other liabilities as of the consolidated balance sheet dates.


(In Thousands)	June 30, 2017		December 31, 2016
Other assets:
Due from servicers		10,071		27,029
Intangible assets		3,450		3,636
Accrued interest		5,825		5,606
Real estate acquired in settlement of loans		4,798		3,933
Deferred financing costs		2,892		3,376
Fixed assets		1,361		1,572
Prepaid taxes		4,285		1,456
Deferred tax asset		1,371		1,371
Prepaid technology expense		684		918
Prepaid insurance expense		387		899
Other		4,328		4,481
Total other assets	$	39,452	$	54,277
Accounts payable and other accrued liabilities:
Accrued salaries, wages and commissions	$	11,212	$	17,450
Servicing principal and interest payable		8,765		10,664
Repair and denial reserve		6,801		6,813
Liability under subservicing agreements		2,153		6,757
Unapplied cash		2,624		6,278
Accrued interest payable		7,833		4,680
Payable to related parties		2,484		3,762
Accrued professional fees		1,201		2,880
Loan indemnification reserve		2,735		2,780
Accrued tax liability		4,067		1,996
Liability under participation agreements		1,169		1,735
Deferred tax liability		118		632
Accounts payable on liability under participation agreements		48		982
Cash held as collateral		80		80
Other		2,478		2,718
Total accounts payable and other accrued liabilities	$	53,768	$	70,207

Real Estate Acquired in Settlement of Loans

The Company acquires real estate through the foreclosure of its loans and the occasional purchase of real estate. The Company’s real estate properties are held in the Company’s consolidated Taxable REIT Subsidiaries (“TRS”), SAMC REO 2013-01, LLC, ReadyCap Lending, LLC, other asset specific TRSs, as well as the Company’s securitization transactions. The following tables summarize the carrying amount of the Company’s real estate holdings as of the consolidated balance sheet dates:


(In Thousands)	June 30, 2017		December 31, 2016
North Carolina		1,850		1,850
Florida		1,332		1,320
Illinois		1,249		19
Texas		108		108
Other		259		636
Total	$	4,798	$	3,933

The table above does includes real estate acquired in settlement of loans for which the Company has recorded a valuation allowance of $8.2 million and $6.9 million at June 30, 2017 and December 31, 2016, respectively. These assets have been marked to third-party broker price opinions less an estimate of costs to sell.

Loan indemnification reserve

A liability has been established for potential losses related to representations and warranties made by GMFS for loans sold with a corresponding provision recorded for loan indemnification losses. The liability is included in accounts payable and other accrued liabilities in the Company's consolidated balance sheets and the provision for loan indemnification losses is included in residential mortgage banking activities, net in the Company's consolidated statements of income. In assessing the adequacy of the liability, management evaluates various factors including historical repurchases and indemnifications, historical loss experience, known delinquent and other problem loans, outstanding repurchase demand, historical rescission rates and economic trends and conditions in the industry. Actual losses incurred are reflected as a reduction of the reserve liability. At June 30, 2017 and December 31, 2016, the loan indemnification reserve was $2.7 million and $2.8 million, respectively.

Because of the uncertainty in the various estimates underlying the loan indemnification reserve, there is a range of losses in excess of the recorded loan indemnification reserve that is reasonably possible. The estimate of the range of possible losses for representations and warranties does not represent a probable loss, and is based on current available information, significant judgment, and a number of assumptions that are subject to change. At June 30, 2017 and December 31, 2016, the reasonably possible loss above the recorded loan indemnification reserve was not considered material.