Company: FOACW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-052025
Chunk: 106

Company: Finance of America Companies Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 106
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 of our financial instruments, with the exception of certain notes payable, are either recorded at fair value or the carrying value approximated fair value. The interest recognized on these financial instruments is recorded in Interest income or Interest expense in the Condensed Consolidated Statements of Operations. The interest on our notes payable is recorded in Non-funding interest expense, net, in the Condensed Consolidated Statements of Operations. We evaluate net interest income through an evaluation of all components of interest income and interest expense.

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The following table provides an analysis of all components of net interest income (in thousands):

Three months endedNine months endedSeptember 30,September 30,2025202420252024Interest income:Interest income on mortgage loans$478,536 $486,349 $1,434,459 $1,420,634 Other interest income3,596 3,551 10,075 11,336 Total portfolio interest income482,132 489,900 1,444,534 1,431,970 Interest expense:Interest expense on HMBS and nonrecourse obligations(1)(381,017)(406,473)(1,174,388)(1,173,713)Interest expense on other financing lines of credit(23,014)(20,366)(62,146)(59,548)Total portfolio interest expense(404,031)(426,839)(1,236,534)(1,233,261)Net portfolio interest income78,101 63,061 208,000 198,709 Non-funding interest expense, net(14,488)(9,219)(44,623)(26,639)Net interest income$63,613 $53,842 $163,377 $172,070 

(1) Interest expense on HMBS and nonrecourse obligations includes gains or losses on extinguishment of debt related to the purchase of securities that were previously issued by consolidated trusts.

For the three months ended September 30, 2025 versus the three months ended September 30, 2024

Net income (loss) from continuing operations before income taxes decreased $236.7 million primarily as a result of the following:

•Fair value changes from market inputs or model assumptions decreased $226.0 million primarily due to changes in interest rates, yields, home price appreciation, and other inputs, which generated net fair value losses during the three months ended September 30, 2025 compared to net fair value gains