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OTHER ASSETS AND LIABILITIES
 12 Months Ended
Dec. 31, 2022
Other Income Assets And Liabilities  
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
December 31,December 31,
2022202120222021
Margin receivable, net(A)
$20,614 $358,041 Margin payable$4,852 $9,821 
Excess MSRs, at fair value (Note 5)321,803 344,947 Interest payable87,70030,931 
Servicer advance investments, at fair value (Note 6)398,820 421,807 Accounts payable155,492345,901 
Servicing fee receivables128,438 117,935 Derivative liabilities (Note 18)18,06434,583 
Principal and interest receivable106,608 85,084 Accrued compensation and benefits112,762201,057 
Equity investments(B)
71,388 81,052 Operating lease liabilities (Note 17)101,225142,620 
Other receivables146,131 233,342 Deferred tax liability711,855440,690 
REO19,379 21,641 Other liabilities294,717153,165 
Goodwill (Note 16)(C)
85,199 85,199 $1,486,667 $1,358,768 
Notes receivable, at fair value(D)
— 60,549 
Warrants, at fair value19,346 27,354 
Property and equipment37,883 56,617 
Intangible assets (Note 16)141,413 143,133 
Prepaid expenses60,817 115,110 
Operating lease right-of-use assets (Note 17)77,329 117,131 
Derivative assets (Note 18)52,229 138,173 
Loans receivable, at fair value(E)
94,401 229,631 
Credit facilities receivable(F)
7,095 41,351 
Loans in process and settlements in process(G)
8,849 11,681 
Other assets116,865 105,728 
$1,914,607 $2,795,506 
(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. The loan is 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 24). 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, 2020
$45,299 
Purchases2,464 
Transfer of loans to REO30,015 
Sales(A)
(60,407)
Valuation (provision) reversal4,270 
Balance at December 31, 2021
$21,641 
Purchases210 
Transfer of loans to REO14,936 
Sales(A)
(18,349)
Valuation (provision) reversal 941 
Balance at December 31, 2022
$19,379 
(A)Recognized when control of the property has transferred to the buyer.

As of December 31, 2022, Rithm Capital had residential mortgage loans that were in the process of foreclosure with an unpaid principal balance of $75.9 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 
Fundings6,688 250,000 256,688 
Payment in Kind5,298 4,135 9,433 
Proceeds from repayments(3,188)(25,443)(28,631)
Fair value adjustments due to:
Changes in instrument-specific credit risk— — — 
Other factors(638)939 301 
Balance at December 31, 2021
$60,549 $229,631 $290,180 
Fundings9,000— 9,000 
Payment in Kind3,741 9,195 12,936 
Proceeds from repayments(9,000)(143,256)(152,256)
Transfer to other assets(1,000)— (1,000)
Fair value adjustments due to:
Changes in instrument-specific credit risk(63,062)— (63,062)
Other factors(228)(1,169)(1,397)
Balance at December 31, 2022
$— $94,401 $94,401 

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:
December 31,
20222021
Days Past DueUPBFair ValueFair Value Over (Under) UPBUnpaid Principal BalanceFair ValueFair Value Over (Under) UPB
Current$157,745 $94,401 $(63,344)$289,065 $290,180 $1,115 
90+— — — — — —