Company: FOACW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-052025
Chunk: 17

Company: Finance of America Companies Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 2
Chunk 17
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 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 

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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):

Three months endedNine months endedSeptember 30,September 30,2025202420252024Interest income:Interest income on mortgage loans$478,536 $486,349 $1,434,459 $1,420,634 Other interest income3,596 3,551 10,075 11,336 Total portfolio interest income482,132 489,900 1,444,534 1,431,970 Interest expense:Interest expense on HMBS and nonrecourse obligations(1)(381,017)(406,473)(1,174,388)(1,173,713)Interest expense on other financing lines of credit(23,014)(20,366)(62,146)(59,548)Total portfolio interest expense(404,031)(426,839)(1,236,534)(1,233,261)Net portfolio interest income$78,101 $63,061 $208,000 $198,709 

(1) Interest expense on HMBS and nonrecourse obligations includes gains or losses on extinguishment of debt related to the purchase of securities that were previously issued by consolidated trusts.

For the three months ended September 30, 2025 versus the three months ended September 30, 2024

Total revenues decreased $207.6 million as a result of the following:

•Fair value changes from market inputs or model assumptions decreased $226.0 million primarily due to changes in interest rates, yields, home price appreciation, and other inputs, which generated net fair value losses during the three months ended September 30,