Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 114

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 2
Chunk 114
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,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(17,264)(20,068)Total portfolio interest expense(410,167)(393,804)Net portfolio interest income$70,435 $70,175 

(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.

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

Total revenues increased $91.8 million as a result of the following:

•Fair value changes from model amortization improved $16.7 million primarily due to a higher