Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000044
Chunk: 63

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 63
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 Solutions segment recognized $57.2 million in net origination gains on loan originations of $513.4 million for the three months ended September 30, 2024 compared to $31.4 million in net origination gains on loan originations of $470.0 million for the comparable 2023 period. The increase in net origination gains in the Retirement Solutions segment was due to both higher loan origination volumes and higher margins.

The $3.5 million increase in gain on securitization of HECM tails, net, during the three months ended September 30, 2024 compared to the 2023 period was due to higher premiums from our tail securitizations. Fair value changes from model amortization improved $13.1 million as a function of lower net realized portfolio income and expenses and higher modeled yield on a larger portfolio in the three months ended September 30, 2024 compared to the 2023 period.

• Fee income decreased $5.1 million primarily due to fees associated with the previous operations of the home improvement lending business.

• Gain (loss) on sale and other income from loans held for sale, net, improved $7.0 million due to the absence of residential, commercial, and home improvement loans held for sale activity during the three months ended September 30, 2024.

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• Non-funding interest expense, net, increased $1.9 million due to increases in outstanding amounts and interest rates on our working capital promissory notes.

• Total expenses decreased $25.1 million or 23.8% primarily due to decreases in salaries, benefits, and related expenses as well as decreases in general and administrative expenses due to a reduction in average headcount and continued cost-cutting measures associated with the restructuring of the business.

• Other, net, changed $5.4 million primarily due to the ongoing remeasurement of our deferred purchase price liabilities.

For the nine months ended September 30, 2024 versus the nine months ended September 30, 2023

Net income (loss) from continuing operations before taxes improved $527.0 million primarily as a result of the following:

• Net fair value changes on loans and related obligations improved $477.9 million primarily as a result of improved fair value changes from market inputs or model assumptions compared to the 2023 period. The improvement in fair value changes from market inputs or model assumptions was primarily related to market interest rate and yield volatility, which generated net fair value