Company: FOACW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001828937-25-000061
Chunk: 16

Company: Finance of America Companies Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 2
Chunk 16
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 three months ended June 30, 2025For the three months ended June 30, 2024For the six months ended June 30, 2025For the six months ended June 30, 2024Interest income:Interest income on mortgage loans$478,321 $474,251 $955,923 $934,285 Other interest income3,479 3,840 6,479 7,785 Total portfolio interest income481,800 478,091 962,402 942,070 Interest expense:Interest expense on HMBS and nonrecourse obligations(1)(400,468)(393,504)(793,371)(767,240)Interest expense on other financing lines of credit(21,868)(19,114)(39,132)(39,182)Total portfolio interest expense(422,336)(412,618)(832,503)(806,422)Net portfolio interest income$59,464 $65,473 $129,899 $135,648 

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

55

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

Total revenues increased $89.1 million as a result of the following:

•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 and yield volatility, 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.

For the six months ended June 30, 2025 versus the six months ended June 30,