Company: FOACW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001828937-25-000061
Chunk: 99

Company: Finance of America Companies Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 99
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 trusts.

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

Net income (loss) from continuing operations before income taxes improved $85.7 million primarily as a result of the following:

•Net origination gains increased $15.8 million as a result of higher reverse mortgage loan origination volumes and higher margins. We recognized $56.1 million in net origination gains on loan originations of $602.3 million for the three months ended June 30, 2025 compared to $40.3 million in net origination gains on loan originations of $446.6 million for the comparable 2024 period.

•Fair value changes from model amortization improved $12.4 million primarily due to a higher modeled yield on a larger portfolio during the three months ended June 30, 2025 compared to the 2024 period. Net portfolio interest income decreased $6.0 million due to higher cost of funds within our securitized financing portfolio, which was partially offset by a gain on extinguishment of debt related to the purchase of securities that were previously issued by consolidated trusts.

•Fair value changes from market inputs or model assumptions increased $83.7 million primarily due to lower market interest rates, which generated higher net fair value gains during the three months ended June 30, 2025 compared to the 2024 period. Refer to Note 5 - Fair Value in the Notes to Condensed Consolidated Financial Statements for additional information regarding the key inputs, assumptions, and valuation techniques impacting the value of our loans and related obligations. 

•Non-funding interest expense, net, increased $6.0 million during the three months ended June 30, 2025 compared to the 2024 period primarily due to the discount amortization expense related to the exchange of our senior notes that occurred on October 31, 2024, as well as increased cost of funds on our working capital promissory notes.

•Total expenses increased $4.0 million primarily due to an increase in loan portfolio related expenses due to increased securitization expenses, an increase in marketing and advertising expenses related to brand marketing and our digital innovation strategy, and increases in variable compensation as a result of higher loan production during the three months ended June 30, 2025 compared to the 2024 period. This was partially offset by decreases in general and administrative expenses due to continued cost-cutting initiatives that align