Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 246

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 246
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Nonrecourse debt in consolidated VIE trusts and reverse loan financing liability Nonrecourse commercial loan financing liabilityNonrecourse MSR financing liabilityDeferred purchase price liabilitiesTRA obligationBeginning balance$(10,996,755)$(7,175,857)$(106,758)$(60,562)$(137)$(3,781)Total gain (loss) included in earnings(785,928)(431,248)860 748 69 (756)Purchases, settlements, and transfers:Purchases and additions(7,495,167)(1,701,349)(27,565)— (4,385)— Settlements1,924,130 1,431,522 106,195 59,814 135 — Ending balance$(17,353,720)$(7,876,932)$(27,268)$— $(4,318)$(4,537)Fair Value OptionThe Company has elected to measure its loans held for investment, loans held for sale, HMBS related obligations, and nonrecourse debt at fair value under the fair value option. The Company elected to apply the provisions of the fair value option to these assets and liabilities in order to align financial reporting presentation with the Company’s operational and risk management strategies. Presented in the tables below are the fair value and the UPB, at December 31, 2024 and December 31, 2023, of financial assets and liabilities for which the Company has elected the fair value option (in thousands):

135

Finance of America Companies Inc.Notes to Consolidated Financial Statements

December 31, 2024Estimated Fair ValueUnpaid Principal BalanceAssets at fair value under the fair value optionLoans held for investment, subject to HMBS related obligations$18,669,962 $17,652,495 Loans held for investment, subject to nonrecourse debt:Reverse mortgage loans 9,268,866 9,186,447 Commercial mortgage loans19,537 32,250 Loans held for investment:Reverse mortgage loans519,948 503,727 Commercial mortgage loans155 222 Other assets:Loans held for sale - residential mortgage loans3,454 4,331 Liabilities at fair value under the fair value optionHMBS related obligations18,444,370 17,652,495 Nonrecourse debt:Nonrecourse debt in consolidated VIE trusts and reverse loan financing liability8,950,445 9,