Other Assets and Liabilities

9 Months Ended

Sep. 30, 2022

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

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

Table 13.1 – Components of Other Assets


(In Thousands)	September 30, 2022		December 31, 2021
Accrued interest receivable	$	54,944	$	47,515
Investment receivable	50,149		82,781
Deferred tax asset	20,867		20,867
Operating lease right-of-use assets	17,126		18,772
Income tax receivables	13,959		22
Fixed assets and leasehold improvements (1)	12,411		9,019
Margin receivable	6,683		7,269
REO	3,683		36,126





Other	14,678		8,746
Total Other Assets	$	194,500	$	231,117

(1)Fixed assets and leasehold improvements had a basis of $22 million and accumulated depreciation of $9 million at September 30, 2022.

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

Table 13.2 – Components of Accrued Expenses and Other Liabilities


(In Thousands)	September 30, 2022		December 31, 2021
Payable to non-controlling interests	$	47,487	$	42,670
Accrued interest payable	46,938		39,297
Margin payable	30,389		24,368
Accrued compensation	23,488		74,636
Operating lease liabilities	19,533		20,960
Guarantee obligations	6,532		7,459
Residential loan and MSR repurchase reserve	5,754		9,306
Accrued operating expenses	4,956		4,377
Current accounts payable	4,722		8,273


Bridge loan holdbacks	3,930		3,109





Other	7,396		11,333
Total Accrued Expenses and Other Liabilities	$	201,125	$	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 September 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 nine months ended September 30, 2022.

Table 13.3 – REO Activity


	Nine Months Ended September 30, 2022
(In Thousands)	Bridge		Legacy Sequoia		Freddie Mac SLST		SFR at CAFL		Total
Balance at beginning of period	$	13,067	$	61	$	2,028	$	20,970	$	36,126
Transfers to REO	963		407		2,664		—		4,034
Liquidations (1)	(14,271)		(505)		(2,395)		(20,970)		(38,141)
Changes in fair value, net	974		443		247		—		1,664
Balance at End of Period	$	733	$	406	$	2,544	$	—	$	3,683

(1)For the nine months ended September 30, 2022, REO liquidations resulted in $2 million of realized gains, which were recorded in Investment fair value changes, net on our consolidated statements of income (loss).