Company: FOACW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001828937-25-000061
Chunk: 53

Company: Finance of America Companies Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 53
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 recognized gains of $5.1 million and $17.0 million, respectively, on extinguishment of debt related to these purchases. There were no such gains or losses recognized for the three and six months ended June 30, 2024. The gains or losses are recorded in Interest expense in the Condensed Consolidated Statements of Operations. Consolidated VIEsThe Company securitizes certain of its interests in non-agency reverse mortgage loans and HECM buyouts. The transactions provide investors with the ability to invest in a pool of reverse mortgage loans secured by residential properties. The transactions provide the Company with access to liquidity for these assets, ongoing servicing fees, and potential residual returns. The principal and interest on the outstanding certificates are paid using the cash flows from the underlying reverse mortgage loans, which serve as collateral for the debt. The securitizations are callable at or following the optional redemption date as defined in the respective indenture agreements. The Company has a financing agreement which is structured as a securitization. The special purpose entity created for the purposes of the financing is a VIE which the Company has consolidated, as the Company is the primary beneficiary. The non-agency reverse mortgage loans included in this securitization are recorded in Loans held for investment, at fair value, in the Condensed Consolidated Statements of Financial Condition and the associated debt is recorded in Other financing lines of credit in the Condensed Consolidated Statements of Financial Condition.

18

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

During the three months ended June 30, 2025, certain consolidated VIE loans which were previously classified as Loans held for investment, subject to nonrecourse debt, were transferred to Loans held for sale - reverse mortgage loans due to the Company’s decision to sell the loans.During the three and six months ended June 30, 2025 and 2024, the Company redeemed outstanding securitized notes related to certain non-agency reverse mortgage loan securitizations. As part of the redemptions, the Company paid off nonrecourse debt with outstanding balances of $425.7 million and $745.3 million for the three and six months ended June 30, 2025, respectively, and $260.8 million and $661.2 million for the three and six months ended June 30, 2024, respectively. The notes were paid off at par.Servicing-Securitized LoansIn our