Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 40

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 1
Chunk 40
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 ordinary business will not more-likely-than-not generate sufficient taxable income to utilize the current attributes. Therefore, a valuation allowance for the deferred tax asset in excess of deferred tax liabilities has been maintained. Management also determined that the future sources of taxable income from reversing temporary differences that comprise the investment in FOA Equity deferred tax liability would only be fully realized upon sale of FOA’s interest in FOA Equity. Accordingly, the deferred tax liability from investment in FOA Equity has been treated as an indefinite-lived intangible and is limited by the federal net operating loss utilization rules.

36

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

Tax positions taken in tax years that remain open under the statute of limitations will be subject to examinations by tax authorities. With few exceptions, the Company is no longer subject to state or local examinations by tax authorities for tax years ended December 31, 2020 or prior.

37

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

14.    Business Segment ReportingThe following tables are a presentation of financial information by segment (in thousands):

For the three months ended March 31, 2025Retirement Solutions Portfolio ManagementTotal Reportable SegmentsCorporate and OtherEliminationsTotalPortfolio interest incomeInterest income$— $480,602 $480,602 $— $— $480,602 Interest expense— (410,167)(410,167)— — (410,167)Net portfolio interest income— 70,435 70,435 — — 70,435 Other income (expense)Net origination gains46,038 — 46,038 — — 46,038 Gain on securitization of HECM tails, net— 10,481 10,481 — — 10,481 Fair value changes from model amortization— (40,956)(40,956)— — (40,956)Fair value changes from market inputs or model assumptions— 88,263 88,263 — — 88,263 Net fair value changes on loans and related obligations46,038 57,788 103,826 — — 103,826 Fee income5,683 786 6,469 — (123)6,346 Non-funding interest expense, net— — — (14,912)—