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Other Assets and Liabilities | 9 Months Ended
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Sep. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
Other Assets and Liabilities | Other Assets and Liabilities Other assets at September 30, 2023 and December 31, 2022 are summarized in the following table. Table 13.1 – Components of Other Assets
(In Thousands) |  | September 30, 2023 |  | December 31, 2022
Accrued interest receivable |  | $ | 60,762 |  |  | $ | 60,893 |
REO |  | 54,123 |  |  | 6,455 |
Deferred tax asset |  | 41,931 |  |  | 41,931 |
Investment receivable |  | 36,816 |  |  | 36,623 |
Operating lease right-of-use assets |  | 13,367 |  |  | 16,177 |
Margin receivable |  | 10,536 |  |  | 13,802 |
Fixed assets and leasehold improvements (1) |  | 8,453 |  |  | 12,616 |
Income tax receivables |  | 1,654 |  |  | 3,399 |
Other |  | 22,845 |  |  | 19,344 |
Total Other Assets |  | $ | 250,487 |  |  | $ | 211,240 |
(1)Fixed assets and leasehold improvements had a basis of $17 million and accumulated depreciation of $9 million at September 30, 2023. Accrued expenses and other liabilities at September 30, 2023 and December 31, 2022 are summarized in the following table. Table 13.2 – Components of Accrued Expenses and Other Liabilities
(In Thousands) |  | September 30, 2023 |  | December 31, 2022
Accrued interest payable |  | $ | 51,849 |  |  | $ | 46,612 |
Payable to noncontrolling interests |  | 48,496 |  |  | 44,859 |
Margin payable |  | 25,210 |  |  | 5,944 |
Accrued compensation |  | 23,249 |  |  | 30,929 |
Operating lease liabilities |  | 15,630 |  |  | 18,563 |
Unsettled trades |  | 6,110 |  |  | — |
Accrued operating expenses |  | 6,063 |  |  | 5,740 |
Guarantee obligations |  | 5,913 |  |  | 6,344 |
Residential loan and MSR repurchase reserve |  | 4,611 |  |  | 7,051 |
Current accounts payable |  | 4,588 |  |  | 4,234 |
Bridge loan holdbacks |  | 1,973 |  |  | 3,301 |
Preferred stock dividends payable |  | 1,478 |  |  | — |
Other |  | 13,124 |  |  | 6,626 |
Total Accrued Expenses and Other Liabilities |  | $ | 208,294 |  |  | $ | 180,203 |
Investment Receivable Investment receivable primarily consists of amounts receivable from third-party servicers related to principal and interest receivable from business purpose loans and fees receivable from servicer advance investments. 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. We met all margin calls due through September 30, 2023. Operating Lease Right-of-Use Assets and Operating Lease Liabilities See Note 17 for additional information on leases. 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, 2023. Table 13.3 – REO Activity
|  | Nine Months Ended September 30, 2023
(In Thousands) |  | BPL Bridge |  | Legacy Sequoia |  | Freddie Mac SLST |  | BPL Term at CAFL |  | Total
Balance at beginning of period |  | $ | 3,012 |  |  | $ | 544 |  |  | $ | 2,899 |  |  | $ | — |  |  | $ | 6,455 |
Transfers to REO |  | 48,864 |  |  | 18 |  |  | 2,340 |  |  | 2,684 |  |  | 53,906 |
Liquidations (1) |  | (2,310) |  |  | (562) |  |  | (2,754) |  |  | — |  |  | (5,626) |
Changes in fair value, net |  | (992) |  |  | — |  |  | 380 |  |  | — |  |  | (612) |
Balance at End of Period |  | $ | 48,574 |  |  | $ | — |  |  | $ | 2,865 |  |  | $ | 2,684 |  |  | $ | 54,123 |
(1)For the nine months ended September 30, 2023, REO liquidations resulted in $0.6 million of realized losses, which were recorded in Investment fair value changes, net on our consolidated statements of income. The following table provides detail on the numbers of REO assets at Redwood and at consolidated Legacy Sequoia, Freddie Mac SLST, and CAFL entities at September 30, 2023 and December 31, 2022. Table 13.4 – REO Assets
Number of REO assets |  | Redwood Bridge |  | Legacy Sequoia |  | Freddie Mac SLST |  | BPL Term at CAFL |  | Total
At September 30, 2023 |  | 9 |  |  | — |  |  | 25 |  |  | 1 |  |  | 35 |
At December 31, 2022 |  | 2 |  |  | 2 |  |  | 24 |  |  | — |  |  | 28 |
Legal and Repurchase Reserves See Note 17 for additional information on legal and repurchase reserves. Payable to Non-Controlling Interests In 2018, Redwood and a third-party co-investor, through two partnership entities consolidated by Redwood, purchased servicer advances and excess MSRs related to a portfolio of residential mortgage loans serviced by the co-investor (see Note 4 and Note 11 for additional information on the partnership entities and associated investments). We account for the co-investor’s interests in the entities as liabilities, and at September 30, 2023, the carrying value of their interests was $23 million, representing their current economic interest in the entities. Earnings from the partnership entities are allocated to the co-investors on a proportional basis and during the three and nine months ended September 30, 2023, we allocated $2 million and $4 million, respectively, of income to the co-investors, recorded in Other expenses on our consolidated statements of income. In 2021, Redwood and a third-party investor co-sponsored the transfer and securitization of HEI through the HEI securitization entity and other third-party investors retained subordinate securities issued by the securitization entity alongside Redwood. See Note 10 for a further discussion of the HEI securitization. We account for the co-investors' interests in the HEI securitization entity as a liability, and at September 30, 2023, the carrying value of their interests was $26 million, representing the fair value of their economic interests in the HEI entity. During the three and nine months ended September 30, 2023, the investors' share of earnings (loss), net from their retained interests was $2 million and $3 million, respectively, recorded through Investment fair value changes, net on our consolidated statements of income.

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