Other Assets and Liabilities

9 Months Ended

Sep. 30, 2020

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

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

Table 12.1 – Components of Other Assets


(In Thousands)	September 30, 2020		December 31, 2019
Accrued interest receivable	$	39,330	$	71,058
Investment receivable	25,767		23,330
Right-of-use asset	13,487		11,866
REO	8,535		9,462
Pledged collateral	8,172		32,945
Income tax receivables	8,148		36
FHLBC stock	5,000		43,393
Fixed assets and leasehold improvements (1)	4,408		4,901
Margin receivable	3,809		209,776



Other	7,617		12,554
Total Other Assets	$	124,273	$	419,321

(1)Fixed assets and leasehold improvements had a basis of $12 million and accumulated depreciation of $8 million at September 30, 2020.

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

Table 12.2 – Components of Accrued Expenses and Other Liabilities


(In Thousands)	September 30, 2020		December 31, 2019
Accrued interest payable	$	34,225	$	60,655

Payable to minority partner	17,492		13,189
Accrued compensation	17,127		33,888
Lease liability	15,123		13,443
Deferred consideration	14,442		—
Guarantee obligations	11,264		14,009

Current accounts payable	8,717		5,468
Residential loan and MSR repurchase reserve	8,565		4,268
Residential bridge loan holdbacks	6,350		10,682
Deferred tax liabilities	5,152		5,152


Accrued operating expenses	3,922		4,358
Contingent consideration	—		28,484

Other	13,610		13,297
Total Accrued Expenses and Other Liabilities	$	155,989	$	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 September 30, 2020, we had met all margin calls due.

REO

The carrying value of REO at September 30, 2020 was $9 million, which included $3 million of REO from our residential bridge loan portfolio, $1 million from our consolidated Legacy Sequoia entities, $1 million from our consolidated Freddie Mac SLST entities, and $4 million from consolidated CAFL entities. At September 30, 2020, there were two residential bridge loan REO assets, three REO assets at our Legacy Sequoia entities, nine REO assets at our Freddie Mac SLST entities, and three REO assets at our CAFL entities recorded on our consolidated balance sheets. During the nine months ended September 30, 2020, transfers into REO included a $5 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 nine months ended September 30, 2020, there were REO liquidations of $13 million, resulting in $0.3 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.