Other Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

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

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

Table 12.1 – Components of Other Assets


(In Thousands)	December 31, 2020		December 31, 2019
Investment receivable	$	43,176	$	23,330
Accrued interest receivable	39,445		71,058
Operating lease right-of-use assets	15,012		11,866
REO	8,413		9,462
FHLBC stock	5,000		43,393
Margin receivable	4,758		209,776
Fixed assets and leasehold improvements (1)	4,203		4,901

Pledged collateral	1,177		32,945




Other	9,404		12,590
Total Other Assets	$	130,588	$	419,321

(1)Fixed assets and leasehold improvements had a basis of $11 million and accumulated depreciation of $6 million at December 31, 2020.

Summary of Accrued Expenses and Other Liabilities

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

Table 12.2 – Components of Accrued Expenses and Other Liabilities


(In Thousands)	December 31, 2020		December 31, 2019
Accrued interest payable	$	34,858	$	60,655
Accrued compensation	24,393		33,888
Payable to minority partner	16,941		13,189
Operating lease liabilities	16,687		13,443
Margin payable	14,728		1,700
Deferred consideration	14,579		—
Guarantee obligations	10,039		14,009
Residential loan and MSR repurchase reserve	8,631		4,268
Current accounts payable	6,455		5,468
Bridge loan holdbacks	5,708		10,682
Accrued taxes payable	5,614		5,268
Accrued operating expenses	5,509		4,358

Contingent consideration	—		28,484



Other	15,198		11,481
Total Accrued Expenses and Other Liabilities	$	179,340	$	206,893

Other Real Estate, Roll Forward

The following table summarizes the activity and carrying values of REO assets held at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities during the year ended December 31, 2020.

Table 12.3 – REO Activity


	Year Ended December 31, 2020
(In Thousands)	Redwood Bridge		Legacy Sequoia		Freddie Mac SLST		CAFL		Total
Balance at beginning of period	$	6,887	$	460	$	445	$	1,670	$	9,462
Transfers to REO	6,111		532		1,319		6,157		14,119
Liquidations (1)	(8,830)		(243)		(1,178)		(4,371)		(14,622)
Changes in fair value, net	432		(111)		60		(927)		(546)
Balance at End of Period	$	4,600	$	638	$	646	$	2,529	$	8,413

(1)For the year ended December 31, 2020, REO liquidations resulted in $1 million of realized losses, which were recorded in Investment fair value changes, net on our consolidated statements of income (loss).

The following table provides the detail of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities at December 31, 2020 and December 31, 2019.

Table 12.4 – REO Assets


Number of REO assets	Redwood Bridge	Legacy Sequoia	Freddie Mac SLST	CAFL	Total
At December 31, 2020	3	3	9	2	17
At December 31, 2019	4	4	3	2	13