Company: FOACW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-052025
Chunk: 8

Company: Finance of America Companies Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 2
Chunk 8
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 interest income3,596 3,551 10,075 11,336 Total portfolio interest income482,132 489,900 1,444,534 1,431,970 Interest expense:Interest expense on HMBS and nonrecourse obligations(1)(381,017)(406,473)(1,174,388)(1,173,713)Interest expense on other financing lines of credit(23,014)(20,366)(62,146)(59,548)Total portfolio interest expense(404,031)(426,839)(1,236,534)(1,233,261)Net portfolio interest income78,101 63,061 208,000 198,709 Non-funding interest expense, net(14,488)(9,219)(44,623)(26,639)Net interest income$63,613 $53,842 $163,377 $172,070 

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

For the three months ended September 30, 2025 versus the three months ended September 30, 2024

Net income (loss) from continuing operations before income taxes decreased $236.7 million primarily as a result of the following:

•Fair value changes from market inputs or model assumptions decreased $226.0 million primarily due to changes in interest rates, yields, home price appreciation, and other inputs, which generated net fair value losses during the three months ended September 30, 2025 compared to net fair value gains in the 2024 period. Refer to Note 5 - Fair Value in the Notes to Condensed Consolidated Financial Statements for additional information regarding the key inputs, assumptions, and valuation techniques impacting the value of our loans and related obligations. 

•Net portfolio interest income increased $15.0 million due to gains on extinguishment of debt related to the purchase of securities that were previously issued by consolidated trusts, which was partially offset by a higher cost of funds within our securitized financing portfolio. Fair value changes from model amortization improved $2.5 million primarily due to a higher modeled yield on a larger portfolio during the three months ended September 30, 2025 compared to the 2024 period. 

•Net origination gains increased $2.7 million as a result of higher reverse mortgage loan origination volumes,