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OTHER ASSETS AND LIABILITIES, GENERAL AND ADMINISTRATIVE, AND OTHER ITEMS
 9 Months Ended
Sep. 30, 2021
Other Income Assets And Liabilities [Abstract]  
OTHER ASSETS AND LIABILITIES, GENERAL AND ADMINISTRATIVE, AND OTHER ITEMS OTHER ASSETS AND LIABILITIES, GENERAL AND ADMINISTRATIVE, AND OTHER ITEMS
 
Other Assets and Other Liabilities

Other assets and liabilities consist of the following:
Other AssetsAccrued Expenses
and Other Liabilities
September 30, 2021December 31, 2020September 30, 2021December 31, 2020
Margin receivable, net(A)
$388,528 $271,753 Margin payable$90,751 $— 
Servicing fee receivables146,509 137,426 MSR purchase price holdback18,555 25,121 
Due from servicers31,201 67,854 Interest payable45,983 44,623 
Principal and interest receivable30,782 41,590 Accounts payable322,825 87,406 
Equity investments(B)
70,754 55,504 Derivative liabilities54,766 119,762 
Other receivables138,209 109,111 Due to servicers42,201 59,671 
REO26,569 45,299 Due to agencies13,262 26,748 
Single-family rental properties403,651 41,271 Contingent consideration9,299 14,247 
Goodwill(C)
29,468 29,468 Accrued compensation and benefits175,273 67,025 
Notes receivable, at fair value(D)
51,663 52,389 Excess spread financing, at fair value— 18,420 
Warrants, at fair value26,302 23,218 Operating lease liabilities (Note 15)140,438 31,270 
Recovery asset11,217 13,006 Reserve for sales recourse 36,782 9,799 
Property and equipment59,611 26,999 Reserve for servicing losses22,425 9,288 
Receivable from government agency(E)
7,437 14,369 Deferred tax liability407,577 7,859 
Intangible assets73,723 34,125 Other liabilities85,425 16,063 
Prepaid expenses81,955 30,949 $1,465,562 $537,302 
Operating lease right-of-use assets (Note 15)115,598 26,913 
Derivative assets266,904 290,144 
Ocwen common stock, at fair value4,834 11,187 
Loans receivable, at fair value(F)
233,339 — 
Credit facilities receivable(G)
101,505 — 
Loans in process and settlements in process(H)
396,907 — 
Other assets106,323 35,847 
$2,802,989 $1,358,422 
(A)Represents collateral posted as a result of changes in fair value of New Residential’s (i) real estate securities securing its secured financing agreements and (ii) derivative instruments.
(B)Represents equity investments in funds that invest in (i) a commercial redevelopment project, and (ii) operating companies in the single-family housing industry. The indirect investments are accounted for at fair value based on the net asset value of New Residential’s investment and as an equity method investment, respectively. Equity investments also includes an investment in Covius Holding Inc. (“Covius”), a provider of various technology-enabled services to the mortgage and real estate industries, preferred stock in Valon Mortgage, Inc (“Valon”), a residential mortgage servicing and technology company, and preferred stock in Credijusto Ltd. (“Covalto”), a financial services company.
(C)Includes goodwill derived from the acquisition of Shellpoint Partners LLC (“Shellpoint”) and Guardian Asset Management LLC (“Guardian”).
(D)Represents a subordinated debt facility to Covius and a private note with Matic Insurance Services, Inc. (“Matic”). The loans are accounted for under the fair value option. Electing the fair value option allows the Company to record changes in fair value in the Consolidated Statements of Income and provides users of the financial statements with better information regarding the effect of market factors.
(E)Represents claims receivable from the FHA on early buyout (“EBO”) and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee.
(F)Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Manager (see Note 16). The loans are accounted for under the fair value option. Electing the fair value option allows the Company to record changes in fair value in the Consolidated Statements of Income and provides users of the financial statements with better information regarding the effect of market factors.
(G)Represents cash deposits and collections associated with certain collateral assets which are held by the lender trust until settled each month.
(H)Loans in process represent timing differences in the disbursing of funds and the closing of the loan. Settlements in process represent timing differences in the receipt of funds and settlement of the loan sale.

Real Estate Owned (REO) and Single-Family Rental Properties (SFR)

The following table presents activity related to the carrying value of investments in REO and SFR:
REOSFR
Balance at December 31, 2020$45,299 $41,271 
Purchases2,269 365,823 
Transfer of loans to REO27,020 — 
Sales(A)
(45,933)(269)
Depreciation— (3,174)
Valuation (provision) reversal (2,086)— 
Balance at September 30, 2021$26,569 $403,651 
(A)Recognized when control of the property has transferred to the buyer.

As of September 30, 2021 and December 31, 2020, New Residential’s SFR portfolio consisted of approximately 1,882 and 257 units, respectively. During the three and nine months ended September 30, 2021, New Residential acquired approximately 727 and 1,625 SFR units, respectively.

As of September 30, 2021, New Residential had residential mortgage loans that were in the process of foreclosure with an unpaid principal balance of $72.9 million.

Notes and Loans Receivable
The following table summarizes the activity for notes and loans receivable:
Notes ReceivableLoans ReceivableTotal
Balance at December 31, 2020
$52,389 $— $52,389 
Fundings1,688 250,000 251,688 
Accrued interest paid-in-kind4,017 2,036 6,053 
Proceeds from repayments(3,188)(18,697)(21,885)
Fair value adjustments due to:
Changes in instrument-specific credit risk— — — 
Other factors(3,243)— (3,243)
Balance at September 30, 2021
$51,663 $233,339 $285,002 
The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of notes and loans receivable:
September 30, 2021December 31, 2020
Days Past DueUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal BalanceUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal Balance
Current$287,431 $285,002 $(2,429)$51,575 $52,389 $814 
90+— — — — — — 
$287,431 $285,002 $(2,429)$51,575 $52,389 $814 

Accretion and Other Amortization

As reflected on the Consolidated Statements of Cash Flows, Accretion and Other Amortization consists of the following:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Accretion of net discount on securities and loans$3,317 $18,321 $25,414 $81,112 
Accretion of servicer advances receivable discount and servicer advance investments398 25,503 7,194 38,967 
Accretion of excess mortgage servicing rights income4,195 12,595 16,188 25,177 
Amortization of deferred financing costs(2,513)(6,360)(10,890)(12,352)
Amortization of discount on secured notes and bonds payable(14)(379)(14)(379)
Amortization of discount on corporate debt (441)(3,214)(1,333)(5,069)
Total accretion and other amortization
$4,942 $46,466 $36,559 $127,456 

General and Administrative Expenses

General and Administrative Expenses consists of the following:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Legal and professional$29,419 $22,209 $66,225 $63,798 
Loan origination52,481 23,596 137,642 59,462 
Occupancy18,612 9,356 39,183 26,195 
Subservicing74,156 91,031 234,599 277,367 
Loan servicing3,976 8,311 13,282 23,313 
Property and maintenance19,331 10,503 47,216 26,855 
Other miscellaneous general and administrative
47,096 13,239 109,097 69,949 
Total general and administrative expenses$245,071 $178,245 $647,244 $546,939 
Change in Fair Value of Investments

Change in Fair Value of Investments consists of the following:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Excess MSRs
$(4,837)$(664)$(13,666)$(11,773)
Excess MSRs, equity method investees
(1,176)(393)1,421 (2,902)
Servicer advance investments
(1,662)3,143 (6,535)431 
Real estate and other securities
5,538 27,663 (336,009)(531)
Residential mortgage loans
(26,432)56,940 154,984 (108,306)
Consumer loans held-for-investment(5,708)1,304 (13,338)(4,446)
Derivative instruments
45,389 23,089 214,367 4,213 
Total change in fair value of investments$11,112 $111,082 $1,224 $(123,314)

Gain (Loss) on Settlement of Investments, Net

Gain (Loss) on Settlement of Investments, Net consists of the following:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Gain (loss) on sale of real estate securities
$(63,809)$7,658 $(89,500)$(753,551)
Sale of acquired residential mortgage loans66,807 3,751 116,404 (8,343)
Settlement of derivatives(73,978)(23,192)(152,913)(133,099)
Liquidated residential mortgage loans(6,497)165 (5,868)2,546 
Sale of REO371 1,016 (3,814)2,632 
Extinguishment of debt— (66,256)83 (64,795)
Other(21,211)(17,599)(53,311)(14,385)
Total gain (loss) on settlement of investments, net$(98,317)$(94,457)$(188,919)$(968,995)
Other Income (Loss), Net

Other Income (Loss), Net consists of the following:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Unrealized gain (loss) on secured notes and bonds payable$4,029 $(5,611)$5,245 $535 
Unrealized gain (loss) on contingent consideration(478)(2,079)(886)(5,949)
Unrealized gain (loss) on equity investments10,546 (4,716)5,929 (52,413)
Gain (loss) on transfer of loans to REO(699)703 3,412 5,010 
Gain (loss) on transfer of loans to other assets(37)(512)(14)(773)
Gain (loss) on Ocwen common stock(489)4,342 1,050 221 
Provision for servicing losses(3,347)(3,734)(26,148)(19,764)
Bargain purchase gain3,497 — 3,497 — 
Rental and ancillary revenue19,072 6,790 39,094 17,851 
Property and maintenance revenue28,755 16,837 73,765 45,495 
Other income (loss)(1,583)(8,339)(25,248)(29,979)
Total other income (loss), net$59,266 $3,681 $79,696 $(39,766)