Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 15

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 1
Chunk 15
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)(4,524)Net loss from discontinued operations attributable to noncontrolling interest (2,722)(2,621)Net loss from discontinued operations attributable to controlling interest $(2,028)$(1,903)There were no material cash flow activities related to discontinued operations for the three months ended March 31, 2025 and 2024.

17

Finance of America Companies Inc.Notes to Condensed Consolidated Financial Statements (Unaudited)

4.    Variable Interest Entities and SecuritizationsThe Company determined that the special purpose entities created in connection with its securitizations are VIEs. A VIE is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary, which is the entity that, through its variable interests, has both the power to direct the activities that significantly impact the VIE’s economic performance and the obligations to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. From time to time, the Company may purchase securities that were previously issued by a consolidated trust. Under these circumstances, we extinguish the outstanding debt and recognize gains or losses for the difference between the consideration paid and the carrying value of the debt. During the three months ended March 31, 2025, the Company recognized a gain of $11.9 million on extinguishment of debt related to these purchases. There were no such gains or losses recognized for the three months ended March 31, 2024. The gains or losses are recorded in Interest expense in the Condensed Consolidated Statements of Operations. Consolidated VIEsThe Company securitizes certain of its interests in non-agency reverse mortgage loans and HECM buyouts. The transactions provide investors with the ability to invest in a pool of reverse mortgage loans secured by residential properties. The transactions provide the Company with access to liquidity for these assets, ongoing servicing fees, and potential residual returns. The principal and interest on the outstanding certificates are paid using the cash flows from the underlying reverse mortgage loans, which serve as collateral for the debt. The securitizations are callable at or following the optional redemption date as defined in the respective indenture agreements. The Company also entered into a financing agreement which was structured as a securitization.