Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 87

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 8
Chunk 87
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 structures meet the definition of a VIE and concluded that the Company does not hold a significant variable interest in the securitizations and the Company does not have the power to direct the activities that most significantly affect the economic performance of the VIEs. However, the transfers of the loans to the VIEs were determined not to be sales. As such, the Company continues to recognize the loans and recognized a nonrecourse liability for the proceeds received from third parties for the transfer of the loans. Bonds issued in the securitization that were retained by the Company are not recognized. The Company’s continuing involvement with and exposure to loss from the VIEs includes the carrying value of the retained bonds, servicing advances in the role as servicer, and obligations under representations and warranties contained in the loan sale agreements. Creditors of the VIEs have no recourse to the Company’s assets or general credit. The underlying performance of the mortgage loans held has a direct impact on the fair values and cash flows of the beneficial interests held.The tables below present a summary of the unconsolidated VIEs for which the Company holds variable interests (in thousands):December 31, 2024Carrying valueAssetsLiabilitiesMaximum exposure to lossTotal assets in VIEsTransfers of loans - sale treatmentRetained interests$47,568 $— $47,568 $948,364 Transfers of loans - secured borrowingLoans and nonrecourse liability393,405 374,071 19,334 393,405 TOTAL $440,973 $374,071 $66,902 $1,341,769  December 31, 2023Carrying valueAssetsLiabilitiesMaximum exposure to lossTotal assets in VIEsTransfers of loans - sale treatmentRetained interests$50,774 $— $50,774 $1,008,152 Transfers of loans - secured borrowingLoans and nonrecourse liability389,557 368,343 21,214 389,557 TOTAL $440,331 $368,343 $71,988 $1,397,709 As of December 31, 2024 and December 31, 2023, there were $0.2 million and $0.7 million, respectively, of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 90 days or more past due.

6.    Fair Value