Company: FOACW
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001828937-25-000061
Chunk: 72

Company: Finance of America Companies Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 72
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 (in thousands, except for ratios):Financial Covenants RequirementJune 30, 2025Maximum Allowable DistributionFARAdjusted Tangible Net Worth$250,000 $697,057 $447,057 Liquidity 40,815 44,259 3,444 Leverage Ratio 6:12.1:1457,753 FAHAdjusted Tangible Net Worth$200,000 $684,705 $484,705 Liquidity40,000 46,595 6,595 Leverage Ratio10:12.4:1522,301 Financial Covenants RequirementDecember 31, 2024Maximum Allowable DistributionFARAdjusted Tangible Net Worth$250,000 $501,883 $251,883 Liquidity 40,129 45,512 5,383 Leverage Ratio 6:12.7:1276,823 FAHAdjusted Tangible Net Worth$200,000 $502,744 $302,744 Liquidity 40,000 47,794 7,794 Leverage Ratio 10:12.9:1355,886 

10.    Litigation The Company’s business is subject to legal proceedings, examinations, investigations, and reviews by various federal, state, and local regulatory and enforcement agencies as well as private litigants such as the Company’s borrowers or former employees. At any point in time, the Company may have open investigations with regulators or enforcement agencies, including examinations and inquiries related to its loan servicing and origination practices. These matters and other pending or potential future investigations, examinations, inquiries, or lawsuits may lead to administrative or legal proceedings, and possibly result in remedies, including fines, penalties, restitution, alterations in business practices, or additional expenses and collateral costs.As a litigation or regulatory matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and reasonably estimable. If, at the time of evaluation, the loss contingency is not both probable and reasonably estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and reasonably estimable. Once the matter is deemed to be both probable and reasonably estimable, the Company establishes an accrued liability and records a corresponding amount to litigation related expense. The Company will continue to monitor the matter for further developments