Company: FOACW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-052025
Chunk: 57

Company: Finance of America Companies Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 57
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 Loans held for investment, at fair value15,385 168,641 Other assets, net (includes $51,542 and $0 at fair value)104,342 53,400 TOTAL ASSETS$10,489,121 $9,375,249 LIABILITIESNonrecourse debt, at fair value$10,242,769 $8,947,378 Other financing lines of credit42,168 136,157 Payables and other liabilities2,339 1,277 TOTAL VIE LIABILITIES10,287,276 9,084,812 Retained bonds and beneficial interests eliminated in consolidation(460,568)(359,077)TOTAL CONSOLIDATED LIABILITIES$9,826,708 $8,725,735 Unconsolidated VIEsTransfer of loans accounted for as salesThe Company securitized certain of its interests in non-agency reverse mortgage loans and in agency-eligible residential mortgage loans. The transactions provided investors with the ability to invest in a pool of mortgage loans secured by residential properties and provided the Company with access to liquidity for these assets and ongoing service fees. The Company’s beneficial interest in the securitizations is limited to a 5% retained interest in the trusts. The Company determined that the securitization structures meet the definition of a VIE and concluded that the Company does not hold a significant variable interest in the securitizations and that the contractual role as servicer is not a variable interest. The transfers of the loans to the VIEs were determined to be sales. The Company derecognized the mortgage loans and did not consolidate the trusts.The Company’s continuing involvement with and exposure to loss from the VIEs includes the carrying value of the retained bonds, the servicing asset recognized in the sale of the loans, servicing advances in the role as servicer, and obligations under representations and warranties contained in the loan sale agreements. Creditors of the VIEs have no recourse to the Company’s assets or general credit. The underlying performance of the mortgage loans transferred has a direct impact on the fair values and cash flows of the beneficial interests held and the servicing asset recognized.Transfer of loans accounted for as secured borrowingsThe Company securitized certain non-agency mortgage loans where its beneficial interest in the securitizations is limited to a 5% retained interest in the trusts. The Company determined that these securitization structures meet the definition of a VIE and