Other Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

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

Other assets at June 30, 2021 and December 31, 2020 are summarized in the following table.

Table 12.1 – Components of Other Assets


(In Thousands)	June 30, 2021		December 31, 2020
Accrued interest receivable	$	41,366	$	39,445
Investment receivable	38,281		43,176
REO	15,489		8,413
Operating lease right-of-use assets	14,370		15,012
Margin receivable	10,269		4,758
Fixed assets and leasehold improvements (1)	7,202		4,203


Pledged collateral	—		1,177



Other	9,455		14,404
Total Other Assets	$	136,432	$	130,588

(1)Fixed assets and leasehold improvements had a basis of $14 million and accumulated depreciation of $7 million at June 30, 2021.

Components of Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities at June 30, 2021 and December 31, 2020 are summarized in the following table.

Table 12.2 – Components of Accrued Expenses and Other Liabilities


(In Thousands)	June 30, 2021		December 31, 2020
Accrued compensation	$	42,737	$	24,393
Accrued interest payable	35,615		34,858
Margin payable	19,503		14,728
Operating lease liabilities	15,997		16,687

Payable to minority partner	15,414		16,941
Unsettled trades	13,952		—
Residential loan and MSR repurchase reserve	8,709		8,631
Guarantee obligations	8,446		10,039

Accrued income taxes payable	5,395		5,614
Bridge loan holdbacks	5,394		5,708


Accrued operating expenses	4,938		5,509

Deferred consideration	—		14,579
Other	15,605		21,653
Total Accrued Expenses and Other Liabilities	$	191,705	$	179,340

Other Real Estate

The following table summarizes the activity and carrying values of REO assets held at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities during the six months ended June 30, 2021.

Table 12.3 – REO Activity


	Six Months Ended June 30, 2021
(In Thousands)	Redwood Bridge		Legacy Sequoia		Freddie Mac SLST		CAFL		Total
Balance at beginning of period	$	4,600	$	638	$	646	$	2,529	$	8,413
Transfers to REO	2,289		65		1,548		11,924		15,826
Liquidations (1)	(5,972)		(39)		(766)		(1,949)		(8,726)
Changes in fair value, net	428		(5)		208		(655)		(24)
Balance at End of Period	$	1,345	$	659	$	1,636	$	11,849	$	15,489

(1)For the six months ended June 30, 2021, REO liquidations resulted in less than $0.1 million of realized losses, which were recorded in Investment fair value changes, net on our consolidated statements of income (loss).

The following table provides the detail of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities at June 30, 2021 and December 31, 2020.

Table 12.4 – REO Assets


Number of REO assets	Redwood Bridge	Legacy Sequoia	Freddie Mac SLST	CAFL	Total
At June 30, 2021	3	3	18	2	26
At December 31, 2020	3	3	9	2	17