Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 22

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 1
Chunk 22
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 SMM and discount rates. The Company estimates prepayment speeds giving consideration that the Company may in the future transfer additional loans to the trust, subject to the availability of funds provided for within the trust.Level 3Deferred purchase price liabilitiesDeferred purchase price liabilitiesThese liabilities are measured based on the estimated amount of indemnified claims associated with the acquisition of certain assets and liabilities from American Advisors Group, now known as Bloom Retirement Holdings Inc. (“AAG/Bloom”), and the closing market price of the Company’s publicly-traded stock on the applicable date of the Condensed Consolidated Statements of Financial Condition. Level 3Tax Receivable Agreements (“TRA”) obligationThe fair value is derived through the use of a DCF model. The significant unobservable assumptions used in the DCF include the ability to utilize tax attributes based on current tax forecasts, a constant U.S. federal income tax rate, and a discount rate.Level 3March 31, 2025December 31, 2024Instrument / Unobservable InputsRangeWeighted AverageRangeWeighted AverageAssetsLoans held for investment, subject to HMBS related obligationsWAL (in years)NM3.1NM3.0CPRNM20.9 %NM21.6 %Loss frequencyNM4.5 %NM4.4 %Loss severity4.9% - 15.2%4.9 %3.4% - 15.9% 3.5 %Discount rateNM4.9 %NM5.3 %Average draw rateNM1.0 %NM1.1 %

22

Finance of America Companies Inc.Notes to Condensed Consolidated Financial Statements (Unaudited)

March 31, 2025December 31, 2024Instrument / Unobservable InputsRangeWeighted AverageRangeWeighted AverageLoans held for investment, subject to nonrecourse debt:Non-agency reverse mortgage loans - securitizedWAL (in years)NM10.1NM10.1LTV0.0% - 90.1%47.3 %0.0% - 98.0%47.2 %CPRNM14.8 %NM14.8 %Loss severityNM10.0 %NM10.0 %HPA(4.0)% - 11.4%3.9 %(5.6)% - 8.3%3.6 %Discount rateNM6.8