Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 91

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 8
Chunk 91
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 primary assumptions utilized include weighted average SMM and discount rates. The Company estimates prepayment speeds giving consideration that the Company may in the future transfer additional loans to the trust, subject to the availability of funds provided for within the trust.Level 3Deferred purchase price liabilitiesDeferred purchase price liabilitiesThese liabilities are measured based on the estimated amount of indemnified claims associated with the AAG Transaction and the closing market price of the Company’s publicly-traded stock on the applicable date of the Consolidated Statements of Financial Condition. Refer to Note 3 - Acquisitions for additional information.Level 3TRA obligationThe fair value is derived through the use of a DCF model. The significant unobservable assumptions used in the DCF include the ability to utilize tax attributes based on current tax forecasts, a constant U.S. federal income tax rate, and a discount rate.Level 3December 31, 2024December 31, 2023Instrument / Unobservable InputsRangeWeighted AverageRangeWeighted AverageAssetsLoans held for investment, subject to HMBS related obligationsWAL (in years)NM3.0NM3.4CPRNM21.6 %NM20.1 %Loss frequencyNM4.4 %NM4.5 %Loss severity3.4% - 15.9%3.5 %3.4% - 12.9% 3.5 %Discount rateNM5.3 %NM5.0 %Average draw rateNM1.1 %NM1.1 %Loans held for investment, subject to nonrecourse debt:Non-agency reverse mortgage loans - securitizedWAL (in years)NM10.1NM9.7LTV0.0% - 98.0%47.2 %0.0% - 79.6%45.9 %CPRNM14.8 %NM14.7 %Loss severityNM10.0 %NM10.0 %HPA(5.6)% - 8.3%3.6 %(9.8)% - 7.6%3.3 %Discount rateNM7.0 %NM6.9 %HECM buyouts - securitized (performing)WAL (in years)NM7.1NM7.4CPRNM15.1 %NM15.1 %Loss severity3.4% - 15.9%4.