Other Assets and Liabilities

6 Months Ended

Jun. 30, 2022

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

Other assets at June 30, 2022 and December 31, 2021 are summarized in the following table.

Table 12.1 – Components of Other Assets


(In Thousands)	June 30, 2022		December 31, 2021
Accrued interest receivable	$	51,006	$	47,515
Investment receivable	25,688		82,781
Deferred tax asset	20,867		20,867
Operating lease right-of-use assets	17,074		18,772
Income tax receivables	15,573		22
Margin receivable	11,420		7,269
Fixed assets and leasehold improvements (1)	11,189		9,019
REO	7,813		36,126





Other	11,150		8,746
Total Other Assets	$	171,780	$	231,117

(1)Fixed assets and leasehold improvements had a basis of $20 million and accumulated depreciation of $9 million at June 30, 2022.

Accrued expenses and other liabilities at June 30, 2022 and December 31, 2021 are summarized in the following table.

Table 12.2 – Components of Accrued Expenses and Other Liabilities


(In Thousands)	June 30, 2022		December 31, 2021
Payable to non-controlling interests	$	49,544	$	42,670
Accrued interest payable	42,548		39,297
Operating lease liabilities	19,448		20,960
Accrued compensation	17,765		74,636
Margin payable	15,023		24,368
Accrued operating expenses	8,743		4,377
Guarantee obligations	6,768		7,459
Residential loan and MSR repurchase reserve	5,678		9,306
Current accounts payable	5,518		8,273


Bridge loan holdbacks	3,983		3,109





Other	15,807		11,333
Total Accrued Expenses and Other Liabilities	$	190,825	$	245,788

Refer to Note 12 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 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 June 30, 2022, we had met all margin calls due.

REO

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 SFR entities during the six months ended June 30, 2022.

Table 12.3 – REO Activity


	Six Months Ended June 30, 2022
(In Thousands)	Bridge		Legacy Sequoia		Freddie Mac SLST		SFR at CAFL		Total
Balance at beginning of period	$	13,068	$	61	$	2,028	$	20,969	$	36,126
Transfers to REO	963		407		1,763		—		3,133
Liquidations (1)	(9,549)		(504)		(1,661)		(20,969)		(32,683)
Changes in fair value, net	625		443		169		—		1,237
Balance at End of Period	$	5,107	$	407	$	2,299	$	—	$	7,813

(1)For the six months ended June 30, 2022, REO liquidations resulted in $1 million of realized gains, which were recorded in Investment fair value changes, net on our consolidated statements of income.

The following table provides the detail of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL SFR entities at June 30, 2022 and December 31, 2021.

Table 12.4 – REO Assets


Number of REO assets	Bridge	Legacy Sequoia	Freddie Mac SLST	SFR at CAFL	Total
At June 30, 2022	3	1	21	—	25
At December 31, 2021	5	2	24	3	34