Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 112

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 2
Chunk 112
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31, 2025 when compared to the 2024 period. These reductions were partially offset by a $2.2 million increase in marketing and advertising expenses related to brand marketing and our digital innovation strategy.

Portfolio Management Segment

The following table summarizes our Portfolio Management segment’s results (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 revenues129,009 37,249 Total expenses23,731 22,753 NET INCOME BEFORE INCOME TAXES$105,278 $14,496 

Our Portfolio Management segment generates its revenues primarily from the net interest income and fair value changes on portfolio assets, monetized by securitization, sale, or other financing of those assets. 

Net fair value changes in our Portfolio Management segment include fair value adjustments primarily related to the following assets and liabilities:

•Loans held for investment, subject to HMBS related obligations, at fair value

•Loans held for investment, subject to nonrecourse debt, at fair value

•Loans held for investment, at fair value

•HMBS related obligations, at fair value; and

•Nonrecourse debt, at fair value.

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Key Metrics

The following table provides a summary of the assets and liabilities under management by our Portfolio Management segment (in thousands):

March 31, 2025December 31, 2024Cash and cash equivalents$32,698 $29,355 Restricted cash199,586 254,335 Loans held for investment, subject to HMBS related obligations, at fair value18,809,023 18,669,962 Loans held for investment, subject to nonrecourse debt, at fair value9,630,150 9,288,403