Company: FOACW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001828937-25-000061
Chunk: 56

Company: Finance of America Companies Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 56
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 in the loan sale agreements. Creditors of the VIEs have no recourse to the Company’s assets or general credit. The underlying performance of the mortgage loans held has a direct impact on the fair values and cash flows of the beneficial interests held.The tables below present a summary of the unconsolidated VIEs for which the Company holds variable interests (in thousands):June 30, 2025Carrying valueAssetsLiabilitiesMaximum exposure to lossTotal assets in VIEsTransfers of loans - sale treatmentRetained interests$45,669 $— $45,669 $912,073 Transfers of loans - secured borrowingLoans and nonrecourse liability400,833 381,888 18,945 400,833 TOTAL $446,502 $381,888 $64,614 $1,312,906  December 31, 2024Carrying valueAssetsLiabilitiesMaximum exposure to lossTotal assets in VIEsTransfers of loans - sale treatmentRetained interests$47,568 $— $47,568 $948,364 Transfers of loans - secured borrowingLoans and nonrecourse liability393,405 374,071 19,334 393,405 TOTAL $440,973 $374,071 $66,902 $1,341,769 As of June 30, 2025, there were $0.3 million of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 90 days or more past due. As of December 31, 2024, there were $0.2 million of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 90 days or more past due.

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

Issuance of HMBS

The Company securitizes HECM loans into HMBS, which Ginnie Mae guarantees, and sells the HMBS in the secondary market while retaining the rights to service the HECM loans. The Company determined that HECM loans transferred into HMBS do not meet the requirements of sale accounting and are not derecognized upon date of transfer. As of June 30, 2025, the Company was servicing 2,966 Ginnie Mae loan pools and the weighted average interest rate on the HMBS related obligations was 6