Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 11

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 11
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imated fair value. The interest recognized on these financial instruments is recorded in Interest income or Interest expense in the Consolidated Statements of Operations. The interest on our notes payable is recorded in Non-funding interest expense, net, in the Consolidated Statements of Operations. We evaluate net interest income through an evaluation of all components of interest income and interest expense.

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The following table provides an analysis of all components of net interest income (in thousands):

For the year ended December 31, 2024For the year ended December 31, 2023Interest income:Interest income on mortgage loans(1)$1,890,700 $1,617,954 Other interest income14,514 10,923 Total portfolio interest income1,905,214 1,628,877 Interest expense:Interest expense on HMBS and nonrecourse obligations(1)(1,559,341)(1,273,159)Interest expense on other financing lines of credit(77,945)(87,839)Total portfolio interest expense(1,637,286)(1,360,998)Net portfolio interest income267,928 267,879     Non-funding interest expense, net(39,498)(29,619)Net interest income$228,430 $238,260 

(1) Amounts include interest income and expense on all loans held for investment, subject to HMBS related obligations, loans held for investment, subject to nonrecourse debt, other loans held for investment, HMBS related obligations, and nonrecourse debt.

For the year ended December 31, 2024 versus the year ended December 31, 2023

Net income (loss) from continuing operations before income taxes improved $209.7 million primarily as a result of the following:

•Net fair value changes on loans and related obligations improved $102.7 million primarily as a result of increased net origination gains. The Retirement Solutions segment recognized $179.8 million in net origination gains on loan originations of $1.9 billion for the year ended December 31, 2024 compared to $121.6 million in net origination gains on loan originations of $1.6 billion for the comparable 2023 period. The increase in net origination gains in the Retirement Solutions segment was due to both higher loan origination volumes and higher margins associated with the increase in volumes from our retail platform acquired from AAG/Bloom.

The $20.0 million increase in gain on