Company: FOACW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001828937-25-000061
Chunk: 8

Company: Finance of America Companies Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 2
Chunk 8
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 result of the following:

•Net origination gains increased $22.2 million as a result of higher reverse mortgage loan origination volumes, partially offset by lower margins due to changes in channel mix. We recognized $102.1 million in net origination gains on loan originations of $1.2 billion for the six months ended June 30, 2025 compared to $79.9 million in net origination gains on loan originations of $870.0 million for the comparable 2024 period. 

•Fair value changes from model amortization improved $29.0 million primarily due to a higher modeled yield on a larger portfolio during the six months ended June 30, 2025 compared to the 2024 period. Net portfolio interest income decreased $5.7 million due to higher cost of funds within our securitized financing portfolio, which was partially offset by gains on extinguishment of debt related to the purchases of securities that were previously issued by consolidated trusts. 

•Fair value changes from market inputs or model assumptions increased $158.4 million primarily due to lower market interest rates, which generated higher net fair value gains during the six months ended June 30, 2025 compared to the 2024 period. Refer to Note 5 - Fair Value in the Notes to Condensed Consolidated Financial Statements for additional information regarding the key inputs, assumptions, and valuation techniques impacting the value of our loans and related obligations.

•Non-funding interest expense, net, increased $12.7 million during the six months ended June 30, 2025 compared to the 2024 period primarily due to the discount amortization expense related to the exchange of our senior notes that occurred on October 31, 2024, as well as increased cost of funds on our working capital promissory notes.

•Total expenses decreased $0.9 million primarily due to decreases in general and administrative expenses due to continued cost-cutting initiatives that align expenses with our unified modern retirement solutions platform, as well as decreases in salaries, benefits, and related expenses related to a reduction in average headcount during the six months ended June 30, 2025 compared to the 2024 period. This was partially offset by an increase in loan portfolio related expenses due to increased securitization expenses, an increase in marketing and advertising expenses related to brand marketing and our digital innovation strategy, and an increase in variable compensation as a result of higher loan production.

•Other, net, changed $7.7 million primarily due to valuation