General and Administrative Expenses and Other Expenses (Tables)

6 Months Ended

Jun. 30, 2020

Other Income and Expenses [Abstract]

Components of General and Administrative Expenses and Other Expenses

Components of our general and administrative, and other expenses for the three and six months ended June 30, 2020 and 2019 are presented in the following table.

Table 21.1 – Components of General and Administrative Expenses and Other Expenses


	Three Months Ended June 30,						Six Months Ended June 30,
(In Thousands)	2020		2019		2020		2019
General and Administrative Expenses
Fixed compensation expense	$	11,818	$	9,252	$	26,502	$	17,349
Variable compensation expense	3,278		4,021		3,289		8,423
Equity compensation expense	3,262		4,024		5,257		6,977
Acquisition-related equity compensation expense ⁽¹⁾	1,212		—		2,424		—
Systems and consulting	2,395		2,536		5,607		4,364
Loan acquisition costs ⁽²⁾	2,152		1,516		6,878		3,101
Office costs	1,887		1,585		3,995		2,889
Accounting and legal	2,788		960		5,004		2,085
Corporate costs	626		545		1,297		1,219
Other operating expenses	674		1,816		2,507		3,007
Total General and Administrative Expenses	30,092		26,255		62,760		49,414

Other Expenses
Goodwill impairment expense	—		—		88,675		—
Amortization of purchase-related intangible assets	3,873		1,900		8,179		2,711
Contingent consideration expense ⁽³⁾	134		311		446		311
Other	1,076		241		(802)		468
Total Other Expenses	5,083		2,452		96,498		3,490
Total General and Administrative Expenses and Other Expenses	$	35,175	$	28,707	$	159,258	$	52,904

(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.