Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 19

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 19
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 31, 2024For the year ended December 31, 2023Interest income:Interest income on mortgage loans(1)$1,890,700 $1,617,954 Other interest income14,514 10,923 Total portfolio interest income1,905,214 1,628,877 Interest expense:Interest expense on HMBS and nonrecourse obligations(1)(1,559,341)(1,273,159)Interest expense on other financing lines of credit(77,945)(87,839)Total portfolio interest expense(1,637,286)(1,360,998)Net portfolio interest income$267,928 $267,879 

(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 year ended December 31, 2024 versus the year ended December 31, 2023

Total revenues increased $56.5 million or 49.0% as a result of the following:

•Net fair value changes on loans and related obligations improved $44.5 million or 30.9% primarily as a result of improved fair value changes from model amortization compared to the 2023 period. The improvement in fair value changes from model amortization of $27.3 million was primarily due to a higher modeled yield on a larger portfolio during the year ended December 31, 2024 compared to the 2023 period.

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The $20.0 million increase in gain on securitization of HECM tails, net, during the year ended December 31, 2024 compared to the 2023 period was due to higher premiums from our tail securitizations. 

•Fee income decreased $7.1 million primarily related to lower MSR servicing fee income due to a much lower MSR portfolio balance during the year ended December 31, 2024 compared to the 2023 period.

•Gain (loss) on sale and other income from loans held for sale, net, improved $19.1 million as a result of minimal losses related to the wind-down of residential, commercial, and home improvement loans held for sale activity for the year ended December 31, 2024 compared to the 2023 period.

Expenses

In the table below