Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000042
Chunk: 64

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 64
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 net fair value gains during the three months ended June 30, 2024 compared to losses in 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 $5.4 million increase in gain on securitization of HECM tails, net, during the three months ended June 30, 2024 compared to the 2023 period was due to higher marks from our tail securitizations. Fair value changes from model amortization improved $7.4 million due to higher residual yield leading to lower modeled amortization in the three months ended June 30, 2024 compared to the 2023 period.

The Retirement Solutions segment recognized $40.3 million in net origination gains on loan originations of $446.6 million for the three months ended June 30, 2024 compared to $32.9 million in net origination gains on loan originations of $397.6 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.

• Fee income decreased $5.9 million due to fees associated with the previous operations of the home improvement lending business, as well as lower mortgage servicing rights (“MSR”) servicing fee income due to a much lower MSR portfolio balance for the three months ended June 30, 2024 compared to the 2023 period.

• Gain (loss) on sale and other income from loans held for sale, net, improved $4.3 million primarily as a result of minimal residential, commercial, and home improvement loans held for sale activity for the three months ended June 30, 2024 compared to the 2023 period.

• Total expenses decreased $25.0 million or 22.7% 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

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partially offset by an increase in marketing and advertising expenses within our retail loan originations platform acquired from AAG/Bloom.

For the six months ended June 30, 2024 versus the six months ended June 30, 2023

Net loss from continuing operations before taxes decreased $146.3 million or 88.2% primarily as