Company: FOACW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-052025
Chunk: 115

Company: Finance of America Companies Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 115
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ECM tails, net11,654 10,560 32,990 32,317 Fair value changes from model amortization(41,293)(43,753)(117,705)(149,174)Fair value changes from market inputs or model assumptions(21,872)204,154 161,330 228,976 Net fair value changes on loans and related obligations(51,511)170,961 76,615 112,119 Fee income750 930 2,109 2,648 Net other income (expense)(50,761)171,891 78,724 114,767 Total revenues$27,340 $234,952 $286,724 $313,476 

The majority of our financial instruments are valued utilizing a process that combines the use of a discounted cash flow (“DCF”) model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment and repayment assumptions used in the model are based on various factors, with the key assumptions being prepayment and repayment speeds, credit loss frequencies and severity, and discount rate 

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assumptions. The changes in fair value due to portfolio runoff and realization of modeled income and expenses are recorded in Fair value changes from model amortization in the Condensed Consolidated Statements of Operations, and other fair value changes are recorded in Fair value changes from market inputs or model assumptions in the Condensed Consolidated Statements of Operations. The interest recognized on these financial instruments is recorded in Interest income or Interest expense in the Condensed Consolidated Statements of Operations. 

The following table provides an analysis of all components of net portfolio 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,