Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000044
Chunk: 64

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 64
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 gains during the nine 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 Retirement Solutions segment recognized $137.1 million in net origination gains on loan originations of $1.4 billion for the nine months ended September 30, 2024 compared to $88.8 million in net origination gains on loan originations of $1.2 billion for the comparable 2023 period. The increase in net origination gains in the Retirement Solutions segment was due to both higher loan origination volumes and higher margins associated with the increase in volumes from our retail platform acquired from AAG/Bloom.

The $15.2 million increase in gain on securitization of HECM tails, net, during the nine months ended September 30, 2024 compared to the 2023 period was due to higher premiums from our tail securitizations. Fair value changes from model amortization improved $13.2 million as a function of lower net realized portfolio income and expenses and higher modeled yield on a larger portfolio in the nine months ended September 30, 2024 compared to the 2023 period.

• Fee income decreased $11.2 million primarily related to lower mortgage servicing rights (“MSR”) servicing fee income due to a much lower MSR portfolio balance for the nine months ended September 30, 2024 compared to the 2023 period, as well as lower fees associated with the previous operations of the home improvement lending business, and a decline in services provided by the Company’s operational fulfillment services team. These reductions were partially offset by higher reverse loan origination fees generated through our retail platform acquired from AAG/Bloom.

• Gain (loss) on sale and other income from loans held for sale, net, improved $23.8 million as a result of minimal residential, commercial, and home improvement loans held for sale activity for the nine months ended September 30, 2024 compared to the 2023 period.

• Non-funding interest expense, net, increased $4.7 million due to increases in outstanding amounts and interest rates on our working capital promissory notes.

• Total expenses decreased $42.5 million or 14.2% primarily due to decreases in salaries, benefits, and related expenses as well as decreases in general and administrative expenses due to a reduction in average