Company: FOACW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001828937-25-000061
Chunk: 108

Company: Finance of America Companies Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 108
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 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):

For the three months ended June 30, 2025For the three months ended June 30, 2024For the six months ended June 30, 2025For the six months ended June 30, 2024Interest income:Interest income on mortgage loans$478,321 $474,251 $955,923 $934,285 Other interest income3,479 3,840 6,479 7,785 Total portfolio interest income481,800 478,091 962,402 942,070 Interest expense:Interest expense on HMBS and nonrecourse obligations(1)(400,468)(393,504)(793,371)(767,240)Interest expense on other financing lines of credit(21,868)(19,114)(39,132)(39,182)Total portfolio interest expense(422,336)(412,618)(832,503)(806,422)Net portfolio interest income$59,464 $65,473 $129,899 $135,648 

(1) Interest expense on HMBS and nonrecourse obligations also includes gains or losses on extinguishment of debt related to the purchase of securities that were previously issued by consolidated trusts.

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For the three months ended June 30, 2025 versus the three months ended June 30, 2024

Total revenues increased $89.1 million as a result of the following:

•Fair value changes from model amortization improved $12.4 million primarily due to a higher modeled yield on a larger portfolio during the three months ended June 30, 2025 compared to the 2024 period. Net portfolio interest income decreased $6.0 million due to higher cost of funds within our securitized financing portfolio, which was partially offset by a gain on extinguishment of debt related to the purchase of securities that were previously issued by consolidated trusts. 

•Fair value changes from market inputs or model assumptions increased $83.7 million primarily due to lower market interest rates and yield volatility, which generated higher net fair