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OTHER ASSETS AND LIABILITIES
 9 Months Ended
Sep. 30, 2022
Other Income Assets And Liabilities [Abstract]  
OTHER ASSETS AND LIABILITIES OTHER ASSETS AND LIABILITIES
 
Other Assets and Accrued Expenses and Other Liabilities consist of the following:
Other AssetsAccrued Expenses
and Other Liabilities
September 30, 2022December 31, 2021September 30, 2022December 31, 2021
Margin receivable, net(A)
$497,384 $358,041 Margin payable$182,248 $9,821 
Servicing fee receivables121,042 117,935 Interest payable69,691 30,931 
Principal and interest receivable110,312 85,084 Accounts payable186,806 345,901 
Equity investments(B)
68,384 81,052 Termination fee payable (Note 25)100,000 — 
Other receivables168,881 233,342 Derivative liabilities (Note 17)67,314 34,583 
REO19,790 21,641 Accrued compensation and benefits114,840 201,057 
Goodwill (Note 15)(C)
85,199 85,199 Operating lease liabilities (Note 16)110,069 142,620 
Notes receivable, at fair value(D)
35,168 60,549 Deferred tax liability738,207 440,690 
Warrants, at fair value22,052 27,354 Other liabilities324,504 153,165 
Property and equipment33,799 56,617 $1,893,679 $1,358,768 
Intangible assets (Note 15)146,755 143,133 
Prepaid expenses66,223 115,110 
Operating lease right-of-use assets (Note 16)89,844 117,131 
Derivative assets (Note 17)353,073 138,173 
Loans receivable, at fair value(E)
164,335 229,631 
Credit facilities receivable(F)
36,443 41,351 
Loans in process and settlements in process(G)
15,588 11,681 
Other assets124,326 105,728 
$2,158,598 $2,028,752 
(A)Represents collateral posted as a result of changes in fair value of Rithm Capital’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 commercial redevelopment project is accounted for at fair value based on the net asset value of Rithm Capital’s investment. 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”), Guardian Asset Management LLC (“Guardian”) and Genesis.
(D)Represents a subordinated debt facility to Covius and a private bridge loan to Credijusto Ltd. (“Covalto”). 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 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 Former Manager (see Note 23). 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.
(F)Represents cash deposits and collections associated with certain collateral assets which are held by the lender trust until settled each month.
(G)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) — REO assets are those individual properties acquired by Rithm Capital or where Rithm Capital receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession). Rithm Capital measures REO assets at the lower of cost or fair value, with valuation changes recorded in Other Income or Valuation and Credit Loss (Provision) Reversal on Loans and Real Estate Owned in the Consolidated Statements of Income. REO assets are managed for prompt sale and disposition at the best possible economic value.

The following table presents activity related to the carrying value of investments in REO:
Balance at December 31, 2021$21,641 
Purchases210 
Transfer of loans to REO10,762 
Sales(A)
(13,790)
Valuation (provision) reversal 967 
Balance at September 30, 2022$19,790 
(A)Recognized when control of the property has transferred to the buyer.

As of September 30, 2022, Rithm Capital had residential mortgage loans that were in the process of foreclosure with an unpaid principal balance of $102.2 million.

Notes and Loans Receivable — The following table summarizes the activity for notes and loans receivable:
Notes ReceivableLoans ReceivableTotal
Balance at December 31, 2021
$60,549 $229,631 $290,180 
Fundings9,000 — 9,000 
Payment in Kind3,741 6,740 10,481 
Proceeds from repayments(6,651)(70,604)(77,255)
Transfer to other assets(1,000)— (1,000)
Fair value adjustments due to:
Changes in instrument-specific credit risk(30,243)— (30,243)
Other factors(228)(1,432)(1,660)
Balance at September 30, 2022
$35,168 $164,335 $199,503 
The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate fair value of notes and loans receivable:
September 30, 2022December 31, 2021
Days Past DueUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal BalanceUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal Balance
Current$230,292 $199,503 $(30,789)$289,065 $290,180 $1,115 
90+— — — — — —