Other Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

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

Other assets at March 31, 2023 and December 31, 2022 are summarized in the following table.

Table 13.1 – Components of Other Assets


(In Thousands)	March 31, 2023		December 31, 2022
Accrued interest receivable	$	61,397	$	60,893
Investment receivable	45,372		36,623
Deferred tax asset	41,931		41,931
Margin receivable	17,079		13,802
Operating lease right-of-use assets	15,297		16,177
REO	13,095		6,455
Fixed assets and leasehold improvements (1)	9,292		12,616
Income tax receivables	3,047		3,399





Other	25,711		19,344
Total Other Assets	$	232,221	$	211,240

(1)Fixed assets and leasehold improvements had a basis of $18 million and accumulated depreciation of $9 million at March 31, 2023.

Components of Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities at March 31, 2023 and December 31, 2022 are summarized in the following table.

Table 13.2 – Components of Accrued Expenses and Other Liabilities


(In Thousands)	March 31, 2023		December 31, 2022
Accrued interest payable	$	51,321	$	46,612
Payable to noncontrolling interests	46,203		44,859
Accrued compensation	20,148		30,929
Operating lease liabilities	17,638		18,563
Guarantee obligations	6,223		6,344
Residential loan and MSR repurchase reserve	5,858		7,051
Accrued operating expenses	5,696		5,740
Current accounts payable	3,162		4,234
Bridge loan holdbacks	2,953		3,301
Margin payable	2,558		5,944
Unsettled trades	1,704		—





Preferred stock dividends payable	1,419		—
Other	11,388		6,626
Total Accrued Expenses and Other Liabilities	$	176,271	$	180,203

Other Real Estate

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 SFR entities during the three months ended March 31, 2023.

Table 13.3 – REO Activity


	Three Months Ended March 31, 2023
(In Thousands)	BPL Bridge		Legacy Sequoia		Freddie Mac SLST		BPL Term at CAFL		Total
Balance at beginning of period	$	3,012	$	544	$	2,899	$	—	$	6,455
Transfers to REO	7,615		18		381		—		8,014
Liquidations (1)	—		(544)		(812)		—		(1,356)
Changes in fair value, net	(192)		—		174		—		(18)
Balance at End of Period	$	10,435	$	18	$	2,642	$	—	$	13,095

(1)For the three months ended March 31, 2023, REO liquidations resulted in less than $0.1 million of realized losses, which were recorded in Investment fair value changes, net on our consolidated statements of income.

The following table provides detail on the numbers of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities at March 31, 2023 and December 31, 2022.

Table 13.4 – REO Assets


Number of REO assets	Redwood Bridge	Legacy Sequoia	Freddie Mac SLST	BPL Term at CAFL	Total
At March 31, 2023	4	1	25	—	30
At December 31, 2022	2	2	24	—	28