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OTHER ASSETS AND LIABILITIES, GENERAL AND ADMINISTRATIVE, AND OTHER ITEMS
 3 Months Ended
Mar. 31, 2021
Other Income Assets And Liabilities  
OTHER ASSETS AND LIABILITIES, GENERAL AND ADMINISTRATIVE, AND OTHER ITEMS OTHER ASSETS AND LIABILITIES, GENERAL AND ADMINISTRATIVE, AND OTHER ITEMS
 
Other Assets and Other Liabilities

Other assets and liabilities consists of the following:
Other AssetsAccrued Expenses
and Other Liabilities
March 31, 2021December 31, 2020March 31, 2021December 31, 2020
Margin receivable, net(A)
$612,814 $271,753 Margin payable$238,123 $— 
Servicing fee receivables122,206 137,426 MSR purchase price holdback22,684 25,121 
Due from servicers22,994 67,854 Interest payable37,345 44,623 
Principal and interest receivable64,758 41,589 Accounts payable95,085 87,406 
Equity investments(B)
47,195 55,504 Derivative liabilities74,735 119,762 
Other receivables92,320 109,111 Due to servicers62,437 59,671 
REO35,984 45,299 Due to agencies19,605 26,748 
Single-family rental properties113,152 41,271 Contingent consideration14,655 14,247 
Goodwill(C)
29,468 29,468 Accrued compensation and benefits54,010 67,025 
Notes receivable(D)
50,411 52,389 Excess spread financing, at fair value13,377 18,420 
Warrants, at fair value24,473 23,218 Operating lease liabilities28,927 31,270 
Recovery asset9,891 13,006 Reserve for sales recourse 9,837 9,799 
Property and equipment31,494 27,493 Reserve for servicing losses12,153 9,288 
Receivable from government agency(E)
12,554 14,369 Deferred tax liability93,149 7,859 
Intangible assets33,358 34,125 Other liabilities21,330 16,063 
Prepaid expenses39,811 30,949 $797,452 $537,302 
Operating lease right-of-use assets24,851 26,913 
Derivative assets408,230 290,144 
Ocwen common stock, at fair value11,001 11,187 
Other assets39,144 35,354 
$1,826,109 $1,358,422 
(A)Represents collateral posted as a result of changes in fair value of New Residential’s (i) real estate securities securing its secured financing agreements and (ii) derivative instruments.
(B)Represents equity investments in funds that invest in (i) a commercial redevelopment project, (ii) operating companies in the single-family housing industry. The indirect investments are accounted for at fair value based on the net asset value 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 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.
Real Estate Owned (REO) and Single-Family Rental Properties (SFR)

The following table presents activity related to the carrying value of New Residential’s investments in REO and SFR:
REOSFR
Balance at December 31, 2020$45,299 $41,271 
Purchases2,644 72,379 
Transfer of loans to REO8,701 — 
Sales(A)
(23,817)(127)
Depreciation— (371)
Valuation (provision) reversal 3,157 — 
Balance at March 31, 2021$35,984 $113,152 
(A)Recognized when control of the property has transferred to the buyer.

As of March 31, 2021, New Residential had residential mortgage loans that were in the process of foreclosure with an unpaid principal balance of $302.2 million.

In addition, New Residential has recognized $13.7 million in unpaid claims receivable from FHA on Ginnie Mae EBO loans and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made, or intends to make, a claim.

Accretion and Other Amortization

As reflected on the Consolidated Statements of Cash Flows, Accretion and Other Amortization consists of the following:
Three Months Ended
March 31,
20212020
Accretion of net discount on securities and loans$12,007 $40,052 
Accretion of servicer advances receivable discount and servicer advance investments6,848 (10,915)
Accretion of excess mortgage servicing rights income12,231 13,226 
Amortization of deferred financing costs(4,601)(1,136)
Amortization of discount on secured notes and bonds payable(1)(123)
Amortization of discount on corporate debt (450)— 
Total accretion and other amortization
$26,034 $41,104 
General and Administrative Expenses

General and Administrative Expenses consists of the following:
Three Months Ended
March 31,
20212020
Compensation and benefits expense$65,426 $51,341 
Compensation and benefits expense, origination133,218 61,278 
Legal and professional expense18,219 26,037 
Loan origination expense40,245 16,929 
Occupancy expense10,350 8,064 
Subservicing expense49,839 66,981 
Loan servicing expense4,679 7,853 
Property and maintenance expense12,130 7,463 
Other miscellaneous general and administrative
28,399 29,153 
Total general and administrative expenses$362,505 $275,099 

Change in Fair Value of Investments

Change in Fair Value of Investments consists of the following:
Three Months Ended
March 31,
20212020
Excess MSRs
$(4,618)$(11,024)
Excess MSRs, equity method investees
3,165 (457)
MSR financing receivables
(25,778)(104,111)
Servicer advance investments
(371)(18,749)
Real estate and other securities
(498,339)(86,792)
Residential mortgage loans
60,174 (265,244)
Consumer loans held-for-investment(6,004)(39,917)
Derivative instruments
206,205 (39,982)
Total change in fair value of investments$(265,566)$(566,276)

Gain (Loss) on Settlement of Investments, Net

Gain (Loss) on Settlement of Investments, Net consists of the following:
Three Months Ended
March 31,
20212020
Gain (loss) on sale of real estate securities
$(983)$(754,540)
Gain (loss) on sale of acquired residential mortgage loans
30,399 35,236 
Gain (loss) on settlement of derivatives(27,373)(84,712)
Gain (loss) on liquidated residential mortgage loans
897 (839)
Gain (loss) on sale of REO(3,946)1,173 
Gain (loss) on extinguishment of debt(6)1,461 
Other gain (loss)2,741 2,649 
Total gain (loss) on settlement of investments, net$1,729 $(799,572)
Other Income (Loss), Net

Other Income (Loss), Net consists of the following:
Three Months Ended
March 31,
20212020
Unrealized gain (loss) on secured notes and bonds payable$(4,422)$17,002 
Unrealized gain (loss) on contingent consideration(408)(1,614)
Unrealized gain (loss) on equity investments(2,783)(45,023)
Gain (loss) on transfer of loans to REO1,321 2,595 
Gain (loss) on transfer of loans to other assets(21)(241)
Gain (loss) on Ocwen common stock(186)(5,050)
Provision for servicing losses(6,158)(4,781)
Rental and ancillary revenue5,827 6,260 
Property and maintenance revenue19,906 13,347 
Other income (loss)(36,396)(19,285)
Total other income (loss), net$(23,320)$(36,790)