Other Assets

12 Months Ended

Dec. 31, 2021

Note 12 — Other Assets


	December 31,
	2021		2020
Contingent loan repurchase asset	$	403,740	$	480,221
Prepaid expenses	21,498		21,176
Derivatives, at fair value	21,675		23,246
Prepaid representation, warranty and indemnification claims - Agency MSR sale	15,173		15,173
Intangible assets, net	14,335		600
REO	10,075		7,771
Prepaid lender fees, net	7,150		9,556
Deferred tax assets, net	3,329		3,543
Security deposits	1,174		2,222



Other	9,101		7,975
	$	507,250	$	571,483

Intangible assets at December 31, 2021 are primarily comprised of a $13.7 million subservicing contract intangible asset acquired in 2021, net of accumulated amortization of $0.7 million. On October 1, 2021, PMC completed the transaction entered into on June 17, 2021 with MAM (RMS) and its then parent to acquire certain assets related to reverse mortgage subservicing, including subservicing contracts. In addition, PMC extended employment offers to approximately 350 former MAM (RMS) employees. Concurrent with the closing of the transaction, PMC became the subservicer for approximately 57,000 reverse mortgages, or approximately $14.3 billion in UPB pursuant to subservicing agreements with various clients, including MAM (RMS) (five-year term). The reverse mortgages were transferred to our reverse servicing platform concurrent with the closing. Substantially all of the fair value of the assets acquired in the transaction was concentrated in a single asset, specifically the subservicing contract intangible assets; accordingly, we have accounted for this transaction as an asset acquisition.

The aggregate purchase price at closing was approximately $14.3 million, subject to certain holdbacks and adjustments. Upon acquisition, the subservicing contracts were measured at fair value in accordance with ASC 820. We recorded a subservicing intangible asset of $14.5 million upon acquisition based on relative fair value allocation. We are amortizing the intangible asset ratably over the five-year term of the respective subservicing contracts based on portfolio runoff.