Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000044
Chunk: 76

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 76
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curitization of HECM tails, net, during the three months ended September 30, 2024 compared to the 2023 period was due to higher premiums from our tail securitizations. Fair value changes from model amortization improved $13.1 million as a function of lower net realized portfolio income and expenses and higher modeled yield on a larger portfolio in the three months ended September 30, 2024 compared to the 2023 period.

• Gain (loss) on sale and other income from loans held for sale, net, improved $4.8 million due to the absence of residential, commercial, and home improvement loans held for sale activity during the three months ended September 30, 2024.

For the nine months ended September 30, 2024 versus the nine months ended September 30, 2023

Total revenues improved $438.5 million as a result of the following:

• Net fair value changes on loans and related obligations improved $429.6 million primarily as a result of improved fair value changes from market inputs or model assumptions compared to the 2023 period. The improvement in fair value changes from market inputs or model assumptions was primarily related to market interest rate and yield volatility, which generated net fair value gains during the nine months ended September 30, 2024 compared to losses during the 2023 period. See Note 6 - Fair Value within the Notes to Condensed Consolidated Financial Statements for additional information on assumptions impacting the value of our loans held for investment.

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The $15.2 million increase in gain on securitization of HECM tails, net, during the nine months ended September 30, 2024 compared to the 2023 period was due to higher premiums from our tail securitizations. Fair value changes from model amortization improved $13.2 million as a function of lower net realized portfolio income and expenses and higher modeled yield on a larger portfolio in the nine months ended September 30, 2024 compared to the 2023 period.

• Fee income decreased $8.6 million primarily related to lower MSR servicing fee income due to a much lower MSR portfolio balance during the nine months ended September 30, 2024 compared to the 2023 period.

• Gain (loss) on sale and other income from loans held for sale, net, improved $18.1 million as a result of minimal residential, commercial, and home improvement loans held for sale activity for the nine months ended