Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 168

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 168
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The $20.0 million increase in gain on securitization of HECM tails, net, during the year ended December 31, 2024 compared to the 2023 period was due to higher premiums from our tail securitizations. 

•Fee income decreased $7.1 million primarily related to lower MSR servicing fee income due to a much lower MSR portfolio balance during the year ended December 31, 2024 compared to the 2023 period.

•Gain (loss) on sale and other income from loans held for sale, net, improved $19.1 million as a result of minimal losses related to the wind-down of residential, commercial, and home improvement loans held for sale activity for the year ended December 31, 2024 compared to the 2023 period.

Expenses

In the table below is a summary of the components of our Portfolio Management segment’s total expenses (in thousands):

For the year ended December 31, 2024For the year ended December 31, 2023Salaries$11,299 $13,409 Commissions and bonuses2,188 3,431 Other salary related expenses2,026 3,034 Total salaries, benefits, and related expenses15,513 19,874 Loan portfolio related expenses28,318 16,935 Loan servicing expenses31,323 30,729 Marketing and advertising expenses41 24 Depreciation and amortization77 107 General and administrative expenses12,177 16,354 Total expenses$87,449 $84,023 

For the year ended December 31, 2024 versus the year ended December 31, 2023

Total expenses increased $3.4 million or 4.1% as a result of the following:

•Salaries, benefits, and related expenses decreased $4.4 million or 21.9% primarily due to a decrease in average headcount and continued cost-cutting measures associated with the wind-down of business lines that are not part of our unified modern retirement solutions platform during the year ended December 31, 2024 compared to the 2023 period, as well as lower compensation cost associated with the Replacement RSUs and Earnout Right RSUs. Average headcount was 63 for the year ended December 31, 2024 compared to 73 for the 2023 period.

•Loan portfolio related expenses increased $11.4 million