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Other Assets and Liabilities | 3 Months Ended
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Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
Other Assets and Liabilities | Other Assets and Liabilities Other assets at March 31, 2024 and December 31, 2023 are summarized in the following table. Table 13.1 – Components of Other Assets
(In Thousands) |  | March 31, 2024 |  | December 31, 2023
REO |  | $ | 91,313 |  |  | $ | 93,599 |
Accrued interest receivable |  | 79,491 |  |  | 69,072 |
Investment receivable |  | 50,917 |  |  | 67,302 |
Deferred tax asset |  | 40,116 |  |  | 40,115 |
Margin receivable |  | 19,409 |  |  | 33,414 |
Operating lease right-of-use assets |  | 11,539 |  |  | 12,532 |
Fixed assets and leasehold improvements (1) |  | 7,225 |  |  | 7,829 |
Income tax receivables |  | 1,134 |  |  | 2,082 |
Other |  | 32,487 |  |  | 25,164 |
Total Other Assets |  | $ | 333,631 |  |  | $ | 351,109 |
(1)Fixed assets and leasehold improvements had a basis of $18 million and accumulated depreciation of $10 million at March 31, 2024. Accrued expenses and other liabilities at March 31, 2024 and December 31, 2023 are summarized in the following table. Table 13.2 – Components of Accrued Expenses and Other Liabilities
(In Thousands) |  | March 31, 2024 |  | December 31, 2023
Payable to noncontrolling interests |  | $ | 86,860 |  |  | $ | 81,177 |
Accrued interest payable |  | 60,925 |  |  | 52,755 |
Accrued compensation |  | 18,529 |  |  | 28,140 |
Operating lease liabilities |  | 13,659 |  |  | 14,725 |
Unsettled trades |  | 13,404 |  |  | — |
Accrued operating expenses |  | 9,265 |  |  | 5,527 |
Guarantee obligations |  | 5,650 |  |  | 5,781 |
Residential consumer loan and MSR repurchase reserve |  | 4,878 |  |  | 4,700 |
Current accounts payable |  | 4,481 |  |  | 4,992 |
Bridge loan holdbacks |  | 2,185 |  |  | 2,059 |
Preferred stock dividends payable |  | 1,478 |  |  | 1,478 |
Margin payable |  | — |  |  | 350 |
Other |  | 19,877 |  |  | 15,119 |
Total Accrued Expenses and Other Liabilities |  | $ | 241,191 |  |  | $ | 216,803 |
Investment Receivable Investment receivable primarily consists of amounts receivable from third-party servicers related to principal and interest receivable from residential investor 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 March 31, 2024. 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 entities during the three months ended March 31, 2024. Table 13.3 – REO Activity
|  | Three Months Ended March 31, 2024
(In Thousands) |  | Bridge (1) |  | Legacy Sequoia |  | Freddie Mac SLST |  | Term at CAFL |  | Total
Balance at beginning of period |  | $ | 87,757 |  |  | $ | — |  |  | $ | 3,158 |  |  | $ | 2,684 |  |  | $ | 93,599 |
Transfers to REO |  | 803 |  |  | — |  |  | 1,043 |  |  | — |  |  | 1,846 |
Liquidations (2) |  | (126) |  |  | — |  |  | (1,386) |  |  | — |  |  | (1,512) |
Changes in fair value, net |  | (2,983) |  |  | — |  |  | 363 |  |  | — |  |  | (2,620) |
Balance at End of Period |  | $ | 85,451 |  |  | $ | — |  |  | $ | 3,178 |  |  | $ | 2,684 |  |  | $ | 91,313 |
(1)Includes REO held at Redwood and within consolidated CAFL Bridge securitization entities. (2)For the three months ended March 31, 2024, REO market valuation adjustments and liquidations resulted in net valuation losses of $3 million, 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 March 31, 2024 and December 31, 2023. Table 13.4 – REO Assets
Number of REO assets |  | Redwood Bridge |  | Legacy Sequoia |  | Freddie Mac SLST |  | Term at CAFL |  | Total
At March 31, 2024 |  | 17 |  |  | — |  |  | 24 |  |  | 1 |  |  | 42 |
At December 31, 2023 |  | 16 |  |  | — |  |  | 28 |  |  | 1 |  |  | 45 |
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 March 31, 2024, the carrying value of their interests was $22 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 months ended March 31, 2024, we allocated $1 million of income to the co-investors, recorded in Other expenses on our consolidated statements of income. In 2021 and in 2023, Redwood and a third-party investor co-sponsored the transfer and securitization of HEI through two HEI securitization entities. Other third-party investors contributed HEI into these securitizations through Redwood and retained subordinate beneficial interests issued by the securitization entities alongside Redwood. See Note 10 for a further discussion of the HEI securitization. We account for the co-investors' interests in the HEI securitization entities as liabilities, and at March 31, 2024, the carrying value of their interests was $65 million, representing the fair value of their economic interests in the beneficial interests issued by the HEI entities. During the three months ended March 31, 2024, the investors' share of earnings, net from their retained interests was $5 million, recorded through HEI income, net on our consolidated statements of income.

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