Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-K/A
Source: 0001828937-25-000032
Chunk: 158

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-K/A
Chunk 158
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 and related liabilities using a process that combines the use of a DCF model and analysis of current market data. The cash flow assumptions used in the model are based on various factors. Refer to Note 6 - Fair Value in the Notes to Consolidated Financial Statements for additional information regarding the key inputs, assumptions, and valuation techniques utilized to measure fair value.

Our total market risk is impacted by a variety of other factors including market spreads and the liquidity of the markets. There are certain limitations inherent in the sensitivity analysis presented, including the necessity to conduct the analysis based on a single point in time.

The sensitivities presented are hypothetical and should be evaluated with care. The effect on fair value of a 25 bps variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the hypothetical effects.

The following table summarizes the estimated change in the fair value of our significant assets and liabilities sensitive to interest rates as of December 31, 2024 (in thousands):

|                                                                |     | December 31, 2024 |         |     |           |          |
|:---------------------------------------------------------------|:----|:------------------|--------:|:----|:----------|---------:|
|                                                                |     | Down 25 bps       |         |     | Up 25 bps |          |
| Increase (decrease) in assets                                  |     |                   |         |     |           |          |
| Loans held for investment, subject to HMBS related obligations |     | $                 |  31,649 |     | $         |  -31,580 |
| Loans held for investment, subject to nonrecourse debt:        |     |                   |         |     |           |          |
| Reverse mortgage loans                                         |     |                   | 130,724 |     |           | -128,008 |
| Loans held for investment:                                     |     |                   |         |     |           |          |
| Reverse mortgage loans                                         |     |                   |   4,556 |     |           |   -4,465 |
| Total assets                                                   |     | $                 | 166,929 |     | $         | -164,053 |
| Increase (decrease) in liabilities                             |     |                   |         |     |