Note 11. Other Assets and Liabilities

Other assets at September 30, 2014 and December 31, 2013, are summarized in the following table.

Other Assets


(In Thousands)	September 30, 2014		December 31, 2013
Margin receivable	$	56,217	$	31,149
Investment receivable		24,814		8,923
Restricted investments		11,319		-
Other pledged collateral		5,000		5,000
FHLBC stock		4,846		-
REO		3,349		3,661
Prepaid expenses		2,350		1,850
Fixed assets and leasehold improvements		2,273		1,232
Other		2,600		1,825

Total Other Assets	$	112,768	$	53,640

Margin receivable resulted from margin calls from our swap, master repurchase agreements, and warehouse facilities counterparties that required us to post collateral. Investment receivable represents amounts due to us related to a commercial loan included in our Commercial Securitization that repaid prior to September 30, 2014, but for which we received the cash proceeds subsequent to quarter-end.

During the three months ended September 30, 2014, we transferred $11 million of U.S. Treasury securities to a custodial account related to a risk sharing arrangement we entered into during the same period.

The carrying value of REO at September 30, 2014, was $3 million, which includes the net effect of $5 million related to transfers into REO during the first nine months of 2014, offset by $5 million of REO liquidations. At September 30, 2014 and December 31, 2013, there were 16 and 20 REO properties, respectively, recorded on our consolidated balance sheets, all of which were owned at consolidated Sequoia Entities.

Our fixed assets included in the table above have a basis of $4 million and accumulated depreciation of $2 million.

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities at September 30, 2014 and December 31, 2013 are summarized in the following table.


(In Thousands)	September 30, 2014		December 31, 2013
Accrued compensation	$	12,562	$	22,160
Legal reserve		10,400		12,000
MSR holdbacks payable		4,049		-
Residential repurchase reserve		3,771		1,771
Income tax payable		3,560		1,337
Derivative margin payable		2,873		4,700
Accrued operating expenses		2,170		4,291
Other		8,854		2,445

Total Other Liabilities	$	48,239	$	48,704

See Note 15 for additional information on the legal and residential repurchase reserves.