Operating Expenses

3 Months Ended

Mar. 31, 2016

Other Income and Expenses [Abstract]

Components of our operating expenses for the three months ended March 31, 2016 and 2015 are presented in the following table.

Table 20.1 – Components of Operating Expenses



	Three Months Ended March 31,
(In Thousands)	2016		2015
Fixed compensation expense	$	7,894	$	9,155
Variable compensation expense	1,760		3,991
Equity compensation expense	2,332		2,738
Total compensation expense	11,986		15,884
Systems and consulting	2,622		2,122
Loan acquisition costs ⁽¹⁾	1,601		2,324
Office costs	1,380		1,232
Accounting and legal	985		1,577
Corporate costs	466		526
Other operating expenses	753		1,398
Operating expenses before restructuring charges	$	19,793	$	25,063
Restructuring charges ⁽²⁾	10,659		—
Total Operating Expenses	$	30,452	$	25,063


(1)	Loan acquisition costs primarily includes underwriting and due diligence costs related to the acquisition of residential loans held-for-sale at fair value.

(2)

For the three month months ended March 31, 2016, restructuring charges included $5 million of fixed compensation expense and $4 million of equity compensation expense related to one-time termination benefits, as well as $2 million of other contract termination costs, associated with the restructuring of our conforming and commercial mortgage banking operations and related charges associated with the departure of Redwood's President announced in the first quarter of 2016. See Note 11 for further discussion on restructuring charges.