Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000044
Chunk: 75

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 75
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     |   |                                    1,169,624 |
| Interest expense:                                       |     |   |                                               |     |   |                                               |     |   |                                              |     |   |                                              |
| Interest expense on HMBS and nonrecourse obligations(1) |     |   |                                      -406,473 |     |   |                                      -352,161 |     |   |                                   -1,173,713 |     |   |                                     -902,028 |
| Interest expense on other financing lines of credit     |     |   |                                       -20,366 |     |   |                                       -20,298 |     |   |                                      -59,548 |     |   |                                      -68,400 |
| Total portfolio interest expense                        |     |   |                                      -426,839 |     |   |                                      -372,459 |     |   |                                   -1,233,261 |     |   |                                     -970,428 |
| Net portfolio interest income                           |     | $ |                                        63,061 |     | $ |                                        71,540 |     | $ |                                      198,709 |     | $ |                                      199,196 |

(1) Amounts include interest income and expense on all loans held for investment, subject to HMBS related obligations, loans held for investment, subject to nonrecourse debt, other loans held for investment, HMBS related obligations, and nonrecourse debt.

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

Total revenues improved $337.9 million as a result of the following:

• Net portfolio interest income decreased $8.5 million primarily due to higher average cost of funds within our securitized financing portfolio more than offsetting the increase in interest income on the underlying loans.

• Net fair value changes on loans and related obligations improved $343.2 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 three 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.

The $3.5 million increase in gain on se