Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 63

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 1
Chunk 63
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 expenses$48,462 $49,410 

For the three months ended March 31, 2025 versus the three months ended March 31, 2024

Total expenses decreased $0.9 million or 1.9% as a result of the following:

•Total salaries, benefits, and related expenses increased $0.7 million or 3.4% primarily due to increases in variable compensation as a result of higher loan production and increased shared services allocations, partially offset by a decrease in average headcount. In addition, there was a reduction in compensation cost associated with the Replacement Restricted Stock Units (“RSUs”) and Earnout Right RSUs which expired in 2024. 

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•General and administrative expenses and loan production expenses decreased $3.7 million or 36.4% primarily due to continued cost-cutting measures during the three months ended March 31, 2025 when compared to the 2024 period. These reductions were partially offset by a $2.2 million increase in marketing and advertising expenses related to brand marketing and our digital innovation strategy.

Portfolio Management Segment

The following table summarizes our Portfolio Management segment’s results (in thousands):

For the three months ended March 31, 2025For the three months ended March 31, 2024Portfolio interest income:Interest income$480,602 $463,979 Interest expense(410,167)(393,804)Net portfolio interest income70,435 70,175 Other income (expense):Gain on securitization of HECM tails, net10,481 10,726 Fair value changes from model amortization(40,956)(57,608)Fair value changes from market inputs or model assumptions88,263 13,562 Net fair value changes on loans and related obligations57,788 (33,320)Fee income786 394 Net other income (expense)58,574 (32,926)Total revenues129,009 37,249 Total expenses23,731 22,753 NET INCOME BEFORE INCOME TAXES$105,278 $14,496 

Our Portfolio Management segment generates its revenues primarily from the net interest income and fair value changes on portfolio assets, monetized by securitization, sale, or other financing of those assets. 

Net fair value changes in our Portfolio Management segment include fair value adjustments primarily related to the following assets and liabilities:

•Loans held for