Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000042
Chunk: 90

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 90
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curitization of the loans to, or pursuant to, programs sponsored by Ginnie Mae or private secondary market investors, although prior payment may be required based on, among other things, certain breaches of representations and warranties or other events of default.

When we draw on these facilities, we generally must transfer and/or pledge eligible loans to the lender and comply with various financial and other covenants. The facilities generally have one-year terms and expire at various times during 2024 through 2026. Under the facilities, loans are generally transferred and/or pledged at an advance rate less than the principal balance of the loans (the “haircut”), which serves as the primary credit enhancement for the lender. Six of our warehouse lines of credit are guaranteed by FAH, a consolidated subsidiary of the Company and the parent holding company to the reverse mortgage business . Since the advances to us are generally for less than 100% of the principal balance of the loans, we are required to use working capital to fund the remaining portion of the principal balance of the loans . Upon expiration, management believes it will either renew its existing facilities or

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obtain sufficient additional lines of credit. The interest rate on all outstanding facilities is the Secured Overnight Financing Rate (“SOFR”), plus applicable margin.

The following table presents additional information about our warehouse facilities as of June 30, 2024 (in thousands):

| Reverse Warehouse Facilities       |     | Maturity Date                |     | Total Capacity |           |     | Outstanding Balance |         |
|:-----------------------------------|:----|:-----------------------------|:----|:---------------|----------:|:----|:--------------------|--------:|
| Committed                          |     | July 2024(1)- September 2025 |     | $              |   360,000 |     | $                   | 299,562 |
| Uncommitted                        |     | October 2024 - October 2026  |     |                |   658,000 |     |                     | 267,977 |
| Total reverse warehouse facilities |     |                              |     | $              | 1,018,000 |     | $                   | 567,539 |

(1) The warehouse line of credit with a maturity date in July 2024 has been paid off subsequent to June 30, 2024.

Mortgage facility

As of June 30, 2024, we had $2.0 million in warehouse line of credit capacity collateralized by first lien