Other Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2023

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

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.

Schedule of Components of Accrued Expenses and Other Liabilities

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

Schedule of 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 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