Other Assets and Liabilities

6 Months Ended

Jun. 30, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other assets at June 30, 2020 and December 31, 2019 are summarized in the following table.

Table 12.1 – Components of Other Assets


(In Thousands)	June 30, 2020		December 31, 2019
Accrued interest receivable	$	44,134	$	71,058
Pledged collateral	33,105		32,945
Investment receivable	29,916		23,330
Income tax receivables	17,255		36
Right-of-use asset	15,561		11,866
REO	9,780		9,462
FHLBC stock	5,000		43,393
Fixed assets and leasehold improvements⁽¹⁾	4,590		4,901
Margin receivable	2,746		209,776



Other	9,499		12,554
Total Other Assets	$	171,586	$	419,321

(1)Fixed assets and leasehold improvements had a basis of $12 million and accumulated depreciation of $7 million at June 30, 2020.

Accrued expenses and other liabilities at June 30, 2020 and December 31, 2019 are summarized in the following table.

Table 12.2 – Components of Accrued Expenses and Other Liabilities


(In Thousands)	June 30, 2020		December 31, 2019
Accrued interest payable	$	37,024	$	60,655

Lease liability	17,348		13,443
Payable to minority partner	17,021		13,189
Contingent consideration	14,953		28,484
Guarantee obligations	12,350		14,009
Accrued compensation	10,677		33,888

Residential loan and MSR repurchase reserve	8,295		4,268
Residential bridge loan holdbacks	7,348		10,682
Deferred tax liabilities	5,152		5,152





Other	35,845		23,123
Total Accrued Expenses and Other Liabilities	$	166,013	$	206,893

Refer to our Annual Report on Form 10-K for the year ended December 31, 2019 for additional descriptions of our other assets and liabilities.

Margin Receivable and Payable

Margin receivable and payable resulted from margin calls between us and our counterparties under derivatives, master repurchase agreements, and warehouse facilities, whereby we or the counterparty posted collateral. Through June 30, 2020, we had met all margin calls due.

REO

The carrying value of REO at June 30, 2020 was $10 million, which included $2 million from our residential bridge loan portfolio, $1 million of REO from our consolidated Legacy Sequoia entities, $1 million from our consolidated Freddie Mac SLST entities, and $5 million from consolidated CAFL entities. At June 30, 2020, there were three residential bridge loan REO assets, five REO assets at our Legacy Sequoia entities, 10 REO assets at our Freddie Mac SLST entities, and four REO assets at our CAFL entities recorded on our consolidated balance sheets. During the six months ended June 30, 2020, transfers into REO included a $2 million residential bridge loan, $1 million from Legacy Sequoia entities, $1 million from Freddie Mac SLST entities, and $6 million from CAFL entities. During the six months ended June 30, 2020, there were REO liquidations of $8 million, resulting in $1 million of unrealized losses which were recorded in Investment fair value changes, net, on our consolidated statements of income (loss). At December 31, 2019, there were four residential bridge loan REO assets, four REO assets at our Legacy Sequoia entities, three REO assets at our Freddie Mac SLST entities, and two REO assets at our CAFL entities recorded on our consolidated balance sheets.