Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000042
Chunk: 65

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 65
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 a result of the following:

• Net fair value changes on loans and related obligations improved $108.9 million primarily as a result of improved fair value changes from market inputs or model assumptions compared to the 2023 period. The improvement in net fair value changes from market inputs or model assumptions was primarily related to market interest rate and yield volatility, which generated net fair value gains during the six months ended June 30, 2024 compared to losses during the 2023 period. See Note 6 - Fair Value within the Notes to Condensed Consolidated Financial Statements for additional information on assumptions impacting the value of our loans held for investment. The $11.8 million increase in gain on securitization of HECM tails, net, during the six months ended June 30, 2024 compared to the 2023 period was due to higher marks from our tail securitizations and our increased servicing portfolio size from the HECM portfolio acquired from AAG/Bloom.

The Retirement Solutions segment recognized $79.9 million in net origination gains on loan originations of $870.0 million for the six months ended June 30, 2024 compared to $57.4 million in net origination gains on loan originations of $709.1 million for the comparable 2023 period. The increase in net origination gains in the Retirement Solutions segment was due both to higher loan origination volumes and higher margins associated with the increase in volumes from our retail platform acquired from AAG/Bloom.

• Fee income decreased $6.1 million primarily related to lower MSR servicing fee income due to a much lower MSR portfolio balance for the six months ended June 30, 2024 compared to the 2023 period.

• Gain (loss) on sale and other income from loans held for sale, net, improved $16.8 million primarily as a result of minimal residential, commercial, and home improvement loans held for sale activity for the six months ended June 30, 2024 compared to the 2023 period.

• Total expenses decreased $17.4 million or 9.0% 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. This was partially offset by an increase in marketing and advertising expenses within our retail loan originations platform acquired from AAG/Bloom.

#### SEGMENT RESULTS
Revenues and fees are directly attributed