Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 59

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 1
Chunk 59
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ment of other assets— (600)Other, net2,367 1,453 NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES$81,693 $(15,780)

Net interest income

All of our financial instruments, with the exception of our notes payable, are either recorded at fair value or the carrying value approximated fair value. The interest recognized on these financial instruments is recorded in Interest income or Interest expense in the Condensed Consolidated Statements of Operations. The interest on our notes payable is recorded in Non-funding interest expense, net, in the Condensed 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 three months ended March 31, 2025For the three months ended March 31, 2024Interest income:Interest income on mortgage loans(1)$477,602 $460,034 Other interest income3,000 3,945 Total portfolio interest income480,602 463,979 Interest expense:Interest expense on HMBS and nonrecourse obligations(1)(392,903)(373,736)Interest expense on other financing lines of credit(17,264)(20,068)Total portfolio interest expense(410,167)(393,804)Net portfolio interest income70,435 70,175     Non-funding interest expense, net(14,912)(8,152)Net interest income$55,523 $62,023 

(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. Interest expense on HMBS and nonrecourse obligations also includes gains or losses on extinguishment of debt related to the purchase of securities that were previously issued by a consolidated trust.

For the three months ended March 31, 2025 versus the three months ended March 31, 2024

Net income (loss) from continuing operations before income taxes improved $97.5 million primarily as a result of the following:

•Net origination gains increased $6.4 million as a result of higher reverse mortgage loan origination volumes, partially offset by lower margins due to changes in channel mix. We recognized $46.0