Operating Expenses

3 Months Ended

Mar. 31, 2017

Other Income and Expenses [Abstract]

Components of our operating expenses for the three months ended March 31, 2017 and 2016 are presented in the following table.

Table 19.1 – Components of Operating Expenses



	Three Months Ended March 31,
(In Thousands)	2017		2016
Fixed compensation expense	$	6,002	$	7,894
Variable compensation expense	3,933		1,760
Equity compensation expense	2,176		2,332
Total compensation expense	12,111		11,986
Systems and consulting	1,638		2,622
Loan acquisition costs ⁽¹⁾	1,205		1,601
Office costs	1,103		1,380
Accounting and legal	926		985
Corporate costs	440		466
Other operating expenses	803		753
Operating expenses before restructuring charges	18,226		19,793
Restructuring charges ⁽²⁾	—		10,659
Total Operating Expenses	$	18,226	$	30,452


(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 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.