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OTHER INCOME (LOSS), GENERAL AND ADMINISTRATIVE, OTHER ASSETS AND LIABILITIES (Tables)
 6 Months Ended
Jun. 30, 2020
Other Income Assets And Liabilities  
Schedule of Change in Fair Value of Investments
Change in fair value of investments — This item is comprised of the following:
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Change in fair value of investments in excess mortgage servicing rights
$(85) $(8,455) $(11,109) $(3,828) 
Change in fair value of investments in excess mortgage servicing rights, equity method investees
(2,052) (3,276) (2,509) (664) 
Change in fair value of investments in mortgage servicing rights financing receivables
(121,520) (55,411) (225,631) (91,790) 
Change in fair value of servicer advance investments
16,037  1,388  (2,712) 9,291  
Change in fair value of real estate and other securities
58,598  7,385  (28,194) 14,064  
Change in fair value of residential mortgage loans
99,998  72,393  (165,246) 81,607  
Change in fair value of investments in consumer loans held-for-investment
30,694  —  (9,223) —  
Change in fair value of derivative instruments
21,106  (40,666) (18,876) (66,426) 
$102,776  $(26,642) $(463,500) $(57,746) 
Schedule of Gain (Loss) on Settlement of Investments This item is comprised of the following:
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Gain (loss) on sale of real estate securities
$(6,669) $41,023  $(761,209) $106,219  
Gain (loss) on sale of acquired residential mortgage loans
(47,330) 6,575  (12,094) 9,757  
Gain (loss) on settlement of derivatives(25,195) (45,201) (109,907) (138,277) 
Gain (loss) on liquidated residential mortgage loans
3,220  (633) 2,381  (3,122) 
Gain (loss) on sale of REO443  (4,551) 1,616  (6,276) 
Other gains (losses)565  8,363  4,675  (5,586) 
$(74,966) $5,576  $(874,538) $(37,285) 
Schedule of Other Income This item is comprised of the following:
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Unrealized gain (loss) on notes and bonds payable$(10,856) $(1,464) $6,146  $(2,601) 
Unrealized gain (loss) on contingent consideration(2,257) (2,682) (3,871) (4,727) 
Unrealized gain (loss) on equity investments(2,674) (86) (47,697) (159) 
Gain (loss) on transfer of loans to REO1,712  1,600  4,307  6,584  
Gain (loss) on transfer of loans to other assets(20) 244  (261) (277) 
Gain (loss) on Excess MSR recapture agreements562  935  1,190  1,242  
Gain (loss) on Ocwen common stock929  1,451  (4,121) 4,237  
Provision for servicing losses(11,249) (285) (16,030) (926) 
Rental and ancillary revenue20,112  —  39,719  —  
Other income (loss)534  (1,940) (19,402) 88  
$(3,207) $(2,227) $(40,020) $3,461  
Schedule of General and Administrative Expenses Expenses is comprised of the following:
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Compensation and benefits expense, servicing
$59,498  $29,480  $110,839  $54,781  
Compensation and benefits expense, origination73,148  39,341  134,426  70,651  
Legal and professional expense15,552  16,618  41,589  29,910  
Loan origination expense23,635  14,198  46,035  24,467  
Occupancy expense8,775  4,786  16,839  8,965  
Other(A)
36,765  14,483  74,008  29,072  
$217,373  $118,906  $423,736  $217,846  

(A)Represents miscellaneous general and administrative expenses.
Schedule of Other Assets and Liabilities Other assets and liabilities are comprised of the following:
Other AssetsAccrued Expenses
and Other Liabilities
June 30, 2020December 31, 2019June 30, 2020December 31, 2019
Margin receivable, net(A)
$45,527  $280,176  
MSR purchase price holdback
$44,495  $75,348  
Servicing fee receivables145,135  159,607  Interest payable35,524  68,668  
Due from servicers93,108  163,961  Accounts payable109,434  119,771  
Principal and interest receivable45,566  85,191  
Derivative liabilities (Note 10)
24,936  6,885  
Equity investments(B)
66,859  114,763  Due to servicers70,477  88,645  
Other receivables99,190  117,045  Due to Agencies42,118  39,201  
Real Estate Owned68,618  93,672  
Contingent Consideration
57,149  55,222  
Single-family rental properties
26,193  24,133  
Accrued compensation and benefits
51,728  41,228  
Goodwill(C)
29,468  29,737  
Excess spread financing, at fair value
22,059  31,777  
Notes Receivable(D)
47,318  37,001  
Operating lease liabilities
35,165  38,520  
Warrants, at fair value
23,009  28,042  
Reserve for sales recourse
11,560  12,549  
Recovery asset
17,092  23,100  
Reserve for servicing losses
16,030  —  
Property and equipment
23,419  18,018  Other liabilities11,574  22,976  
Receivable from government agency(E)
15,971  19,670  $532,249  $600,790  
Intangible assets36,002  40,963  
Prepaid expenses24,236  19,249  
Operating lease right-of-use asset29,794  32,120  
Derivative assets (Note 10)166,613  41,501  
Ocwen common stock, at fair value3,831  7,952  
Deferred tax asset, net148,746  8,669  
Other assets38,362  51,230  
$1,194,057  $1,395,800  
(A)Represents collateral posted primarily as a result of changes in fair value of our 1) real estate securities securing our repurchase agreements and 2) derivative instruments.
(B)Represents equity investments in funds that invest in 1) a commercial redevelopment project, 2) operating companies in the single-family housing industry. The indirect investments are accounted for at fair value based on the net asset value (“NAV”) of New Residential’s investment and as an equity method investment, respectively. Equity investments also includes an investment in Covius Holding Inc. (“Covius”), a provider of various technology-enabled services to the mortgage and real estate industries.
(C)Includes goodwill derived from the acquisition of Shellpoint Partners LLC (“Shellpoint”) and DGG RE Investments d/b/a Guardian Asset Management LLC (“Guardian”).
(D)Represents a subordinated debt facility to Covius.
(E)Represents claims receivable from the FHA on early buyout (“EBO”) and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee.
Schedule of Accretion and Other Amortization As reflected on the Condensed Consolidated Statements of Cash Flows, this item is comprised of the following:
Six Months Ended
June 30,
20202019
Accretion of net discount on securities and loans$62,791  235,003  
Accretion of servicer advances receivable discount and servicer advance investments13,464  12,957  
Accretion of excess mortgage servicing rights income12,582  11,830  
Amortization of deferred financing costs(5,992) (1,925) 
Amortization of discount on notes and bonds payable(246) (910) 
Amortization of discount on term loan (1,609) —  
$80,990  $256,955  
Schedule of Real Estate Owned
Real Estate Owned
Balance at December 31, 2019$93,672  
Purchases3,910  
Transfer of loans to real estate owned28,197  
Sales(A)
(55,791) 
Valuation (provision) reversal on REO(1,370) 
Balance at June 30, 2020$68,618  

(A)Recognized when control of the property has transferred to the buyer.