Company: FOACW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001828937-25-000061
Chunk: 15

Company: Finance of America Companies Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 2
Chunk 15
---
 $1,306,663 

54

Revenues

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

For the three months ended June 30, 2025For the three months ended June 30, 2024For the six months ended June 30, 2025For the six months ended June 30, 2024Portfolio interest income:Interest income$481,800 $478,091 $962,402 $942,070 Interest expense(422,336)(412,618)(832,503)(806,422)Net portfolio interest income59,464 65,473 129,899 135,648 Other income (expense):Gain on securitization of HECM tails, net10,855 11,031 21,336 21,757 Fair value changes from model amortization(35,456)(47,813)(76,412)(105,421)Fair value changes from market inputs or model assumptions94,939 11,260 183,202 24,822 Net fair value changes on loans and related obligations70,338 (25,522)128,126 (58,842)Fee income573 1,325 1,359 1,718 Net other income (expense)70,911 (24,197)129,485 (57,124)Total revenues$130,375 $41,276 $259,384 $78,524 

The majority of our financial instruments are valued utilizing a process that combines the use of a discounted cash flow (“DCF”) model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment and repayment assumptions used in the model are based on various factors, with the key assumptions being prepayment and repayment speeds, credit loss frequencies and severity, and discount rate assumptions. The changes in fair value due to portfolio runoff and realization of modeled income and expenses are recorded in Fair value changes from model amortization in the Condensed Consolidated Statements of Operations, and other fair value changes are recorded in Fair value changes from market inputs or model assumptions in the Condensed Consolidated Statements of Operations. The interest recognized on these financial instruments is recorded in Interest income or Interest expense in the Condensed Consolidated Statements of Operations. 

The following table provides an analysis of all components of net portfolio interest income (in thousands):

For the