Operating Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Other Income and Expenses [Abstract]

Components of Operating Expenses

Components of our operating expenses for the years ended December 31, 2016, 2015 and 2014 are presented in the following table.

Table 20.1 – Components of Operating Expenses

	Years Ended December 31,
(In Thousands)	2016		2015		2014
Fixed compensation expense	$	24,332	$	35,093	$	29,057
Variable compensation expense	16,581		12,606		14,863
Equity compensation expense	9,093		11,921		9,750
Total compensation expense	50,006		59,620		53,670
Systems and consulting	9,037		10,212		11,654
Loan acquisition costs (1)	5,744		10,326		8,207
Office costs	4,550		5,270		5,011
Accounting and legal	3,658		4,837		5,244
Corporate costs	2,106		2,049		2,237
Other operating expenses	3,284		5,102		4,100
Operating expenses before restructuring charges	78,385		97,416		90,123
Restructuring charges (2)	10,401		—		—
Total Operating Expenses	$	88,786	$	97,416	$	90,123

(1) Loan acquisition costs primarily includes underwriting and due diligence costs related to the acquisition of residential loans held-for-sale at fair value.

(2) For the year ended December 31, 2016, restructuring charges included $5 million of fixed compensation expense and $3 million of equity compensation expense related to one-time termination benefits, as well as $2 million of other contract termination costs, associated with the restructuring of our conforming and commercial mortgage banking operations and related charges associated with the departure of Redwood's President announced in the first quarter of 2016. See Note 11 for further discussion on restructuring charges.