Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 17

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 1
Chunk 17
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 of the Company’s consolidated VIEs, which are included in the Condensed Consolidated Statements of Financial Condition, and excludes intercompany balances, except for retained bonds and beneficial interests (in thousands):March 31, 2025December 31, 2024ASSETSRestricted cash$193,261 $248,905 Loans held for investment, subject to nonrecourse debt, at fair value9,243,455 8,904,303 Loans held for investment, at fair value214,497 168,641 Other assets, net52,678 53,400 TOTAL ASSETS$9,703,891 $9,375,249 LIABILITIESNonrecourse debt, at fair value$9,167,437 $8,947,378 Other financing lines of credit170,103 136,157 Payables and other liabilities1,322 1,277 TOTAL VIE LIABILITIES9,338,862 9,084,812 Retained bonds and beneficial interests eliminated in consolidation(372,312)(359,077)TOTAL CONSOLIDATED LIABILITIES$8,966,550 $8,725,735 Unconsolidated VIEsTransfer of loans accounted for as salesThe Company securitized certain of its interests in non-agency reverse mortgage loans and in agency-eligible residential mortgage loans. The transactions provided investors with the ability to invest in a pool of mortgage loans secured by residential properties and provided the Company with access to liquidity for these assets and ongoing service fees. The Company’s beneficial interest in the securitizations is limited to a 5% retained interest in the trusts. The Company determined that the securitization structures meet the definition of a VIE and concluded that the Company does not hold a significant variable interest in the securitizations and that the contractual role as servicer is not a variable interest. The transfers of the loans to the VIEs were determined to be sales. The Company derecognized the mortgage loans and did not consolidate the trusts.The Company’s continuing involvement with and exposure to loss from the VIEs includes the carrying value of the retained bonds, the servicing asset recognized in the sale of the loans, 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 transferred