Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 108

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 2
Chunk 108
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 ended March 31, 2024Interest income:Interest income on mortgage loans(1)$477,602 $460,034 Other interest income3,000 3,945 Total portfolio interest income480,602 463,979 Interest expense:Interest expense on HMBS and nonrecourse obligations(1)(392,903)(373,736)Interest expense on other financing lines of credit(17,264)(20,068)Total portfolio interest expense(410,167)(393,804)Net portfolio interest income70,435 70,175     Non-funding interest expense, net(14,912)(8,152)Net interest income$55,523 $62,023 

(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. 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 a consolidated trust.

For the three months ended March 31, 2025 versus the three months ended March 31, 2024

Net income (loss) from continuing operations before income taxes improved $97.5 million primarily as a result of the following:

•Net origination gains increased $6.4 million as a result of higher reverse mortgage loan origination volumes, partially offset by lower margins due to changes in channel mix. We recognized $46.0 million in net origination gains on loan originations of $560.7 million for the three months ended March 31, 2025 compared to $39.7 million in net origination gains on loan originations of $423.5 million for the comparable 2024 period. 

•Fair value changes from model amortization improved $16.7 million primarily due to a higher modeled yield on a larger portfolio during the three months ended March 31, 2025 compared to the 2024 period. Net portfolio interest income increased $0.3 million, as higher average cost of funds within our securitized financing portfolio was more than offset by a gain on extinguishment of debt related to the purchase of securities that were previously issued by a consolidated trust. 

•Fair value changes from market inputs or model assumptions increased $74.7 million primarily due to market interest rate and yield volatility, which generated higher