Other Assets and Liabilities

3 Months Ended

Mar. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other assets at March 31, 2020 and December 31, 2019 are summarized in the following table.

Table 12.1 – Components of Other Assets



(In Thousands)	March 31, 2020		December 31, 2019
Margin receivable	$	93,745	$	209,776
Investment receivable	58,541		23,330
FHLBC stock	43,393		43,393
Pledged collateral	33,191		32,945
Right-of-use asset	16,375		11,866
REO	14,366		9,462
Fixed assets and leasehold improvements ⁽¹⁾	4,966		4,901
Other	30,776		12,590
Total Other Assets	$	295,353	$	348,263


(1)	Fixed assets and leasehold improvements had a basis of $12 million and accumulated depreciation of $7 million at March 31, 2020.

Accrued expenses and other liabilities at March 31, 2020 and December 31, 2019 are summarized in the following table.

Table 12.2 – Components of Accrued Expenses and Other Liabilities



(In Thousands)	March 31, 2020		December 31, 2019
Dividends payable	$	37,800	$	—
Lease liability	18,072		13,443
Contingent consideration	14,819		28,484
Payable to minority partner	14,804		13,189
Guarantee obligations	13,395		14,009
Accrued compensation	9,582		33,888
Residential bridge loan holdbacks	9,066		10,682
Deferred tax liabilities	5,152		5,152
Residential loan and MSR repurchase reserve	4,460		4,268
Other	36,449		23,123
Total Accrued Expenses and Other Liabilities	$	163,599	$	146,238

Refer to our Annual Report on Form 10-K for the year ended December 31, 2019 for additional descriptions of our other assets and liabilities.

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. Through March 31, 2020, we had met all margin calls due.

Dividends Payable

Dividends payable of $38 million at March 31, 2020 represent cash dividends on our common stock and certain equity awards for the first quarter of 2020, which were paid on May 8, 2020 to shareholders of record on March 16, 2020.

REO

The carrying value of REO at March 31, 2020 was $14 million, which included $1 million of REO from our Legacy Sequoia entities, $7 million from our residential bridge loan portfolio, $1 million from our consolidated Freddie Mac SLST entities, and $5 million from CAFL entities. At March 31, 2020, there were five REO assets at our Legacy Sequoia entities, four residential bridge loan REO assets, nine REO assets at our Freddie Mac SLST entities, and two REO assets at our CAFL entities recorded on our consolidated balance sheets. During the three months ended March 31, 2020, transfers into REO included $1 million from Legacy Sequoia entities, a $1 million residential bridge loan, $1 million from Freddie Mac SLST entities, and $4 million from CAFL entities. During the three months ended March 31, 2020, there were REO liquidations of $1 million, resulting in $0.5 million of unrealized losses which were recorded in Investment fair value changes, net, on our consolidated statements of income (loss). At December 31, 2019, there were four REO assets at our Legacy Sequoia entities, four residential bridge loan REO assets, three REO assets at our Freddie Mac SLST entities, and two REO assets at our CAFL entities recorded on our consolidated balance sheets.