Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 77

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 1
Chunk 77
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475 85,153 Financing activities(3,500)65,884 Effect of exchange rate changes on cash and cash equivalents(9)(17)Net increase (decrease) in cash and cash equivalents and restricted cash$(50,116)$18,777 Net increase in cash and cash equivalents$4,633 $1,747 Net increase (decrease) in restricted cash(54,749)17,030 

Our cash and cash equivalents and restricted cash decreased by $50.1 million for the three months ended March 31, 2025 compared to an increase of $18.8 million during the comparable period in 2024. Our cash and cash equivalents, excluding restricted cash, increased $4.6 million for the three months ended March 31, 2025 compared to an increase of $1.7 million during the comparable period in 2024.

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Operating Cash Flow

Cash flows from operating activities improved by $40.2 million for the three months ended March 31, 2025 compared to the corresponding 2024 period. The improvement was primarily attributable to changes in payables and other liabilities.

Investing Cash Flow (As Restated)

The decrease of $39.7 million in cash flows from our investing activities during the three months ended March 31, 2025 compared to the 2024 period was primarily attributable to a $56.9 million increase in cash used for purchases and originations of loans held for investment, net of proceeds/payments, and a decrease of $4.7 million in proceeds on the sale of mortgage servicing rights (“MSR”). This was partially offset by an increase of $22.3 million in proceeds/payments on loans held for investment, subject to nonrecourse debt, net of cash used for purchases and originations.

Financing Cash Flow (As Restated)

The decrease of $69.4 million in cash flows from our financing activities during the three months ended March 31, 2025 compared to the 2024 period was primarily driven by a $135.5 million increase in payments on HMBS related obligations, net of proceeds, a $52.1 million decrease in proceeds from other financing lines of credit, net of payments, and a $26.3 million decrease in proceeds related to our notes payable. This was partially offset by a $145.0 million increase in proceeds from issuance of nonrecourse debt, net of payments.

Financial Covenants

Our credit facilities