General and Administrative Expenses and Other Expenses

3 Months Ended

Mar. 31, 2020

Other Income and Expenses [Abstract]

General and Administrative Expenses and Other Expenses

Components of our general and administrative, and other expenses for the three months ended March 31, 2020 and 2019 are presented in the following table.

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



	Three Months Ended March 31,
(In Thousands)	2020			2019
General and Administrative Expenses
Fixed compensation expense	$	14,684		$	8,097
Variable compensation expense	11			4,402
Equity compensation expense	1,995			2,953
Acquisition-related equity compensation expense ⁽¹⁾	1,212			—
Systems and consulting	3,212			1,828
Loan acquisition costs ⁽²⁾	4,726			1,585
Office costs	2,108			1,304
Accounting and legal	2,216			1,125
Corporate costs	671			674
Other operating expenses	1,833			1,191
Total General and Administrative Expenses	32,668			23,159

Other Expenses
Goodwill impairment expense	88,675			—
Amortization of purchase-related intangible assets	4,309			811
Contingent consideration expense ⁽³⁾	312			—
Other	(1,881		)	227
Total Other Expenses	91,415			1,038
Total General and Administrative Expenses and Other Expenses	$	124,083		$	24,197

(1)

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.


(2)	Loan acquisition costs primarily includes underwriting and due diligence costs related to the acquisition of residential loans held-for-sale at fair value as well as employee commissions related to our business purpose loan originations.

(3)

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