Other Assets and Liabilities

Other assets at March 31, 2018 and December 31, 2017, are summarized in the following table.

Table 10.1 – Components of Other Assets



(In Thousands)	March 31, 2018		December 31, 2017
Margin receivable	$	50,200	$	85,044
FHLBC stock	43,393		43,393
Pledged collateral	42,290		42,615
MSR holdback receivable	3,952		8,141
Fixed assets and leasehold improvements ⁽¹⁾	3,794		2,645
REO	3,115		3,354
Guarantee asset	3,055		2,869
Other	8,049		6,905
Total Other Assets	$	157,848	$	194,966


(1)	Fixed assets and leasehold improvements had a basis of $8 million and accumulated depreciation of $4 million at March 31, 2018.

Accrued expenses and other liabilities at March 31, 2018 and December 31, 2017 are summarized in the following table.

Table 10.2 – Components of Accrued Expenses and Other Liabilities



(In Thousands)	March 31, 2018		December 31, 2017
Guarantee obligations	$	18,931	$	19,487
Margin payable	16,878		390
Accrued compensation	11,982		24,025
Deferred tax liabilities	11,764		11,764
Residential loan and MSR repurchase reserve	5,197		4,916
Accrued income taxes payable	4,950		—
Legal reserve	2,000		2,000
Other	6,060		5,147
Total Accrued Expenses and Other Liabilities	$	77,762	$	67,729

Margin Receivable and Payable

Margin receivable and payable resulted from margin calls between us and our counterparties under derivatives, master repurchase agreements, and warehouse facilities, whereby we or the counterparty posted collateral.

FHLB Stock

In accordance with our FHLB-member subsidiary's borrowing agreement with the FHLBC, our subsidiary is required to purchase and hold stock in the FHLBC. See Note 3 and Note 13 for additional information on this borrowing agreement.

Guarantee Asset, Pledged Collateral, and Guarantee Obligations

The pledged collateral, guarantee asset, and guarantee obligations presented in the tables above are related to our risk-sharing arrangements with Fannie Mae and Freddie Mac. In accordance with these arrangements, we are required to pledge collateral to secure our guarantee obligations. See Note 14 for additional information on our risk-sharing arrangements.

MSR Holdback Receivable

MSR holdback receivable represents amounts owed to us from third parties related to the sale of MSRs.

REO

The carrying value of REO at March 31, 2018 was $3 million, which includes the net effect of $1 million related to transfers into REO during the three months ended March 31, 2018, offset by $2 million of REO liquidations, and $0.1 million of unrealized gains resulting from market valuation adjustments. At March 31, 2018 and December 31, 2017, there were 11 and 14 REO properties, respectively, recorded on our consolidated balance sheets, all of which were owned at consolidated Legacy Sequoia entities.

Legal and Repurchase Reserves

See Note 14 for additional information on the legal and residential repurchase reserves.