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Other Assets and Liabilities | 9 Months Ended
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Sep. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
Other Assets and Liabilities | Other Assets and Liabilities Other Assets Other assets at September 30, 2024 and December 31, 2023 are summarized in the following table. Table 14.1 – Components of Other Assets
(In Thousands) |  | September 30, 2024 |  | December 31, 2023
Accrued interest receivable |  | $ | 103,035 |  |  | $ | 69,072 |
Real estate owned |  | 94,598 |  |  | 93,599 |
Investment receivable |  | 67,576 |  |  | 67,302 |
Deferred tax asset |  | 40,116 |  |  | 40,115 |
Margin receivable |  | 27,090 |  |  | 33,414 |
Goodwill |  | 23,373 |  |  | 23,373 |
Intangible assets |  | 21,252 |  |  | 28,462 |
Operating lease right-of-use assets |  | 9,759 |  |  | 12,532 |
Fixed assets and leasehold improvements (1) |  | 6,140 |  |  | 7,829 |
Other |  | 34,748 |  |  | 27,246 |
Total Other Assets |  | $ | 427,687 |  |  | $ | 402,944 |
(1)Fixed assets and leasehold improvements had a basis of $18 million and accumulated depreciation of $12 million at September 30, 2024. Real Estate Owned (REO) The Company holds REO at the lower of the current carrying amount or fair value less estimated selling costs. The following table summarizes the activity and carrying values of REO assets held at Redwood and at consolidated Freddie Mac SLST, and CAFL entities during the three and nine months ended September 30, 2024. Table 14.2 – REO Activity
|  | Three Months Ended September 30, 2024
(In Thousands) |  | Bridge (1) |  |  |  | Freddie Mac SLST |  | Term at CAFL |  | Total
Balance at beginning of period |  | $ | 86,092 |  |  |  |  | $ | 2,527 |  |  | $ | 11,266 |  |  | $ | 99,885 |
Transfers to REO |  | — |  |  |  |  | 967 |  |  | — |  |  | 967 |
Liquidations (2) |  | (1,606) |  |  |  |  | (733) |  |  | (5) |  |  | (2,344) |
Changes in fair value, net (2) |  | (3,992) |  |  |  |  | 82 |  |  | — |  |  | (3,910) |
Balance at End of Period |  | $ | 80,494 |  |  |  |  | $ | 2,843 |  |  | $ | 11,261 |  |  | $ | 94,598 |
|  | Nine Months Ended September 30, 2024
(In Thousands) |  | Bridge (1) |  |  |  | Freddie Mac SLST |  | Term at CAFL |  | Total
Balance at beginning of period |  | $ | 87,757 |  |  |  |  | $ | 3,158 |  |  | $ | 2,684 |  |  | $ | 93,599 |
Transfers to REO |  | 3,951 |  |  |  |  | 2,267 |  |  | 8,582 |  |  | 14,800 |
Liquidations (2) |  | (1,733) |  |  |  |  | (3,067) |  |  | (5) |  |  | (4,805) |
Changes in fair value, net (2) |  | (9,481) |  |  |  |  | 485 |  |  | — |  |  | (8,996) |
Balance at End of Period |  | $ | 80,494 |  |  |  |  | $ | 2,843 |  |  | $ | 11,261 |  |  | $ | 94,598 |
(1)Includes REO held at Redwood and within consolidated CAFL Bridge securitization entities. (2)For the three and nine months ended September 30, 2024, REO market valuation adjustments and liquidations resulted in net valuation losses of $4 million and $9 million, respectively, which were recorded in Investment fair value changes, net on our consolidated statements of income Accrued Expenses and Other Liabilities Accrued expenses and other liabilities at September 30, 2024 and December 31, 2023 are summarized in the following table. Table 14.3 – Components of Accrued Expenses and Other Liabilities
(In Thousands) |  | September 30, 2024 |  | December 31, 2023
Payable to noncontrolling interests |  | $ | 104,444 |  |  | $ | 81,177 |
Margin payable |  | 74,378 |  |  | 350 |
Accrued interest payable |  | 74,097 |  |  | 52,755 |
Accrued compensation |  | 31,294 |  |  | 28,140 |
Operating lease liabilities |  | 11,707 |  |  | 14,725 |
Accrued operating expenses |  | 11,308 |  |  | 5,527 |
Accrued taxes payable |  | 11,166 |  |  | — |
Current accounts payable |  | 6,504 |  |  | 4,992 |
Unsettled trades |  | 4,107 |  |  | — |
Guarantee obligations |  | 3,753 |  |  | 5,781 |
Residential consumer loan and MSR repurchase reserve |  | 3,556 |  |  | 4,700 |
Bridge loan holdbacks (1) |  | 2,148 |  |  | 2,059 |
Preferred stock dividends payable |  | 1,478 |  |  | 1,478 |
Other |  | 35,547 |  |  | 15,119 |
Total Accrued Expenses and Other Liabilities |  | $ | 375,487 |  |  | $ | 216,803 |
(1)Bridge loan holdbacks represent amounts withheld from the initial loan proceeds and are subsequently disbursed to the borrower to be used in the construction, rehabilitation or purchase of the mortgaged property or to fund interest on the bridge loan. Legal and Repurchase Reserves See Note 18 for additional information on legal and repurchase reserves. Payable to Non-Controlling Interests 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 11 and Note 15 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, 2024, the carrying value of their interests was $24 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, 2024, we allocated $26 thousand and $4 million of income to the co-investors, respectively, recorded in Other expenses on our consolidated statements of income. Additionally, 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 September 30, 2024, the carrying value of their interests was $81 million, representing the fair value of their economic interests in the beneficial interests issued by the HEI entities. During the three and nine months ended September 30, 2024, the investors' share of earnings, net from their retained interests was $9 million and $21 million, respectively, recorded through HEI income, net on our consolidated statements of income.

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