General and Administrative Expenses and Other Expenses

12 Months Ended

Dec. 31, 2019

Other Income and Expenses [Abstract]

General and Administrative Expenses and Other Expenses

General and Administrative Expenses and Other Expenses

Components of our general and administrative, and other expenses for the years ended December 31, 2019, 2018 and 2017 are presented in the following table.

Table 22.1 – Components of General and Administrative Expenses and Other Expenses

	Years Ended December 31,
(In Thousands)	2019		2018		2017
General and Administrative Expenses
Fixed compensation expense	$	39,747	$	24,445	$	22,111
Variable compensation expense (1)	25,069		14,589		20,574
Equity compensation expense	13,402		12,388		10,141
Acquisition-related equity compensation expense (2)	1,010		—		—
Systems and consulting	10,746		7,451		7,073
Loan acquisition costs (3)	7,031		7,697		5,022
Office costs	6,310		4,705		4,248
Accounting and legal	5,450		5,529		2,842
Corporate costs	2,351		1,955		1,856
Other	7,556		4,023		3,289
Total General and Administrative Expenses	118,672		82,782		77,156
Other Expenses
Amortization of purchase-related intangible assets (4)	8,699		177		—
Contingent consideration expense (4)	3,217		—		—
Other	1,106		19		—
Total Other Expenses	13,022		196		—
Total General and Administrative Expenses and Other Expenses	$	131,694	$	82,978	$	77,156

(1) Variable compensation expense in 2017 includes $2 million of costs associated with the hiring of a new executive officer.

(2) Acquisition-related equity compensation expense relates to 588,260 shares of restricted stock that were issued to members of CoreVest management as a component of the consideration paid to them for our purchase of their interests in CoreVest. The grant date fair value of these restricted stock awards was $10 million, which will be recognized as compensation expense over the two-year vesting period on a straight-line basis in accordance with GAAP.

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

(4)

Contingent consideration expense relates to the acquisition of 5 Arches during 2019. Refer to Note 2 for additional detail.