Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000042
Chunk: 76

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 76
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                               -767,240 |     |   |                               -549,867 |
| Interest expense on other financing lines of credit     |     |   |                                  -19,114 |     |   |                                  -24,106 |     |   |                                -39,182 |     |   |                                -48,102 |
| Total portfolio interest expense                        |     |   |                                 -412,618 |     |   |                                 -349,582 |     |   |                               -806,422 |     |   |                               -597,969 |
| Net portfolio interest income                           |     | $ |                                   65,473 |     | $ |                                   65,079 |     | $ |                                135,648 |     | $ |                                127,656 |

(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, loans held for investment, HMBS related obligations, and nonrecourse debt.

For the three months ended June 30, 2024 versus the three months ended June 30, 2023

Total revenues increased $187.1 million as a result of the following:

• Net fair value changes on loans and related obligations improved $186.5 million primarily as a result of improved fair value changes from market inputs or model assumptions compared to the 2023 period. The improvement in fair value changes from market inputs or model assumptions was primarily related to market interest rate and yield volatility, which generated net fair value gains during the three months ended June 30, 2024 compared to losses during the 2023 period. See Note 6 - Fair Value within the Notes to Condensed Consolidated Financial Statements for additional information on assumptions impacting the value of our loans held for investment. The $5.4 million increase in gain on securitization of HECM tails, net, during the three months ended June 30, 2024 compared to the 2023 period was due to higher marks from our tail securitizations. Fair value changes from model amortization improved $7.4 million due to higher residual yield leading to lower modeled amortization in the three months ended June 30, 2024 compared to the 2023 period.

• Fee income decreased $1.9 million primarily related to lower MSR servicing fee income due to a much lower MSR portfolio balance for the three months ended June 30, 2024 compared to