Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 65

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 1
Chunk 65
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1 2 Structured deals (size in notes)$876,692 $719,513 

54

Revenues

In the table below is a summary of the components of our Portfolio Management segment’s total revenues (in thousands):

For the three months ended March 31, 2025For the three months ended March 31, 2024Portfolio interest income:Interest income$480,602 $463,979 Interest expense(410,167)(393,804)Net portfolio interest income70,435 70,175 Other income (expense):Gain on securitization of HECM tails, net10,481 10,726 Fair value changes from model amortization(40,956)(57,608)Fair value changes from market inputs or model assumptions88,263 13,562 Net fair value changes on loans and related obligations57,788 (33,320)Fee income786 394 Net other income (expense)58,574 (32,926)Total revenues$129,009 $37,249 

The majority of our financial instruments are valued utilizing a process that combines the use of a discounted cash flow (“DCF”) model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment and repayment assumptions used in the model are based on various factors, with the key assumptions being prepayment and repayment speeds, credit loss frequencies and severity, and discount rate assumptions. The changes in fair value due to portfolio runoff and realization of modeled income and expenses are recorded in Fair value changes from model 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 March 31, 2025For the three months 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,