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Operating Expenses
 9 Months Ended
Sep. 30, 2016
Other Income and Expenses [Abstract]  
Operating Expenses
Operating Expenses
Components of our operating expenses for the three and nine months ended September 30, 2016 and 2015 are presented in the following table.
Table 20.1 – Components of Operating Expenses
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In Thousands)
 
2016
 
2015
 
2016
 
2015
Fixed compensation expense
 
$
5,253

 
$
8,642

 
$
19,022

 
$
27,083

Variable compensation expense
 
5,802

 
3,567

 
11,824

 
11,135

Equity compensation expense
 
2,031

 
2,835

 
7,117

 
9,112

Total compensation expense
 
13,086

 
15,044

 
37,963

 
47,330

Systems and consulting
 
2,692

 
2,355

 
7,274

 
6,718

Loan acquisition costs (1)
 
1,393

 
2,995

 
4,680

 
7,864

Office costs
 
1,056

 
1,314

 
3,501

 
3,912

Accounting and legal
 
721

 
1,047

 
3,043

 
3,754

Corporate costs
 
478

 
484

 
1,589

 
1,521

Other operating expenses
 
925

 
1,258

 
2,367

 
3,679

Operating expenses before restructuring charges
 
20,351

 
24,497

 
60,417

 
74,778

Restructuring charges (2)
 
4

 
—

 
10,545

 
—

Total Operating Expenses
 
$
20,355

 
$
24,497

 
$
70,962

 
$
74,778

(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 nine months ended September 30, 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.