Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000044
Chunk: 22

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 22
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 from model amortization in the Condensed Consolidated Statements of Operations, and other fair value changes being recorded in fair value changes from market inputs or model assumptions in the Condensed Consolidated Statements of Operations.

HMBS Related Obligations, at Fair Value, and Nonrecourse Debt, at Fair Value

The interest on the HMBS related obligations and nonrecourse debt is recorded in interest expense in the Condensed Consolidated Statements of Operations and includes recognition of contractual interest expense based on the stated interest rates of the obligations and amortization of any discount at which the related bonds were issued. The discount is amortized to interest expense in the Condensed Consolidated Statements of Operations over the expected life of the note using the effective interest method. The changes in estimated fair value are recorded in net fair value changes on loans and related obligations, with changes in fair value due to portfolio runoff and realization of modeled income and expenses being recorded in fair value changes from model amortization in the Condensed Consolidated Statements of Operations, and other fair value changes being recorded in fair value changes from market inputs or model assumptions in the Condensed Consolidated Statements of Operations.

Notes Payable, Net

The interest recognized on notes payable is recorded in non-funding interest expense, net, in the Condensed Consolidated Statements of Operations. The interest recognized includes the contractual interest expense based on the stated interest rates of the debt and amortization of any issuance costs, premiums, and discounts which are amortized over the outstanding life of the note using the effective interest method.

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

Recently Issued Accounting Guidance, Not Yet Adopted as of September 30, 2024

| Standard                                                                                                                   |     | Description                                                                                                                                                                                                                                                                                                                                                                   |     | Date of Planned Adoption                                                                                                                                                                                                          |     | Effect on Consolidated Financial Statements                                                                                                                         |
| Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures |     | In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07 which requires disclosures of significant reportable expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss.                                                                      
 This ASU also requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measures of a