Finance of America Companies Inc. (FOA) SEC Filings & Earnings Calls

Fair value volatility from interest rates and market inputs

“Fair value changes from market inputs or model assumptions decreased $194.8 million primarily due to net changes in interest rates, yields, home price appreciation, and other inputs, which generated net fair value losses during the six months ended June 30, 2026 compared to net fair value gains during the 2025 period.” · word for word

Dependence on securitization and financing markets

“Volatility in market conditions resulting from the foregoing policies may cause credit spreads to widen, which reduces, among other things, availability of credit to our Company on favorable terms, liquidity in the market, the fair value of assets on our balance sheet, and price transparency of real estate-related or asset-backed assets.” · word for word

Negative operating cash flow

“Net cash provided by (used in) operating activities $ (314,125) for six months ended June 30, 2026 vs $ (188,555) for 2025.”

GAAP net loss of $29M and diluted loss per share of $1.28 indicate significant GAAP losses.

“$1.28 in diluted loss per share or $29 million net loss for the quarter.” · word for word

Total revenues declined 65% YoY due to fair value accounting impacts.

“Total revenues $62M vs $177M.”

Interest Rate Sensitivity

“prevailing interest rates which impact loan origination volume, with declining interest rates generally leading to increases in volume, and an increasing interest rate environment generally leading to decreases in volume” · word for word

Fair Value Volatility

“Fair value changes from market inputs or model assumptions decreased $68.3 million primarily due to net changes in interest rates, yields, home price appreciation, and other inputs, which generated lower net fair value gains” · word for word

Regulatory Compliance Risk

“FAR requested and received a waiver for the minimum outstanding capital requirements from Ginnie Mae.” · word for word

Macroeconomic and Tariff Policy Uncertainty

“The U.S. Federal Reserve’s monetary policies and the federal government’s tariff policies may have an impact on economic conditions relevant to our business, including real estate values and prevailing mortgage rates, however, the extent of the impact remains uncertain.” · word for word

Insider selling via 10b5-1 plan

“The 2026 10b5-1 Trading Plan provides that Goldman Sachs & Co. LLC (the "Broker") may make periodic sales of up to an aggregate 650,000 shares of Class A Common Stock on behalf of Bloom Retirement Holdings Inc. beginning on June 8, 2026.” · word for word

Insider selling via 10b5-1 plan

“The 2026 10b5-1 Trading Plan provides that Goldman Sachs & Co. LLC (the "Broker") may make periodic sales of up to an aggregate 650,000 shares of Class A Common Stock on behalf of Bloom Retirement Holdings Inc. beginning on June 8, 2026.” · word for word

Year-over-year revenue decline of 28% driven by smaller fair value adjustments in Portfolio Management segment.

“Total revenues $120M vs $166M in Q1'25 (-28%); Portfolio Management revenue $66M vs $129M (-49%) due to smaller positive fair value adjustments.”

Concentration of voting power with BL Investors

“Brian L. Libman and related entities hold 47.3% of total voting power, giving them significant control over corporate actions.”

Potential dilution from convertible instruments

“Convertible Notes ($40M), Exchangeable Secured Notes ($146.8M), and Series A Preferred Stock ($50M) are convertible into Class A Common Stock, potentially diluting existing shareholders.”

Debt maturity and refinancing risk

“Senior Secured Notes ($195.8M) mature in 2026/2027; Blue Owl Financing Facility matures in June 2026; LFH Promissory Note ($20M) matures in August 2026.”

Related party transactions and conflicts of interest

“Significant transactions with BL Investors (Brian Libman) including Secured Notes ($67.1M), LFH Promissory Note ($20M), and Tax Receivable Agreements.”

Regulatory and compliance risks in reverse mortgage industry

“The Company's operations are subject to extensive regulation, including consumer protection laws and HUD/FHA requirements.”

Interest Rate Sensitivity

“Our operations, financial performance, and earnings are significantly impacted by prevailing interest rates...An increase in prevailing interest rates could: adversely affect our loan production volume...increase the cost of servicing our outstanding debt” · word for word

Geographic Concentration

“44% of our reverse mortgage loans (by unpaid principal balance) were secured by properties in the state of California.” · word for word

Leverage and Debt Service

“As of December 31, 2025, we had $30.2 billion in total indebtedness outstanding...Our high level of debt could have important consequences...making it more difficult for us to satisfy our obligations with respect to our debt” · word for word

Warehouse Financing Renewal Risk

“We are generally required to renew a significant portion of our debt financing arrangements each year...our counterparties are not required to renew or extend our repurchase agreements or other financing agreements upon the expiration of their stated terms” · word for word

Regulatory Compliance Burden

“We operate in a heavily regulated industry, and our loan origination and servicing activities expose us to risks of noncompliance with an increasing and inconsistent body of complex laws and regulations” · word for word

Interest rate sensitivity and housing market conditions could impact demand for home equity products.

“Company's business is tied to home equity and retirement demographics; rate changes affect affordability.”

Concentration in reverse mortgage servicing and origination exposes to regulatory changes.

“Acquisition of PHH Mortgage servicing portfolio increases regulatory exposure.”

Interest rate sensitivity

“prevailing interest rates which impact loan origination volume, with declining interest rates generally leading to increases in volume, and an increasing interest rate environment generally leading to decreases in volume” · word for word

Fair value volatility from market inputs

“Fair value changes from market inputs or model assumptions decreased $67.6 million primarily due to changes in interest rates, yields, home price appreciation, and other inputs” · word for word

Macroeconomic and tariff policy uncertainty

“The U.S. Federal Reserve's monetary policies and the federal government's recent tariff policies may have an impact on economic conditions relevant to our business, including real estate values and prevailing mortgage rates, however, the extent of the impact remains uncertain.” · word for word

Margin compression

“During the nine months ended September 30, 2025, the weighted average margin on reverse mortgage loan production was 9.18% compared to 9.91% in 2024, a decrease of 0.73%.” · word for word

Net loss in Q3 due to changes in model assumptions related to home price appreciation (HPA).

“Net loss of $29 million during the third quarter... primarily attributable to changes in model assumptions related to home price appreciation.” · word for word

Total equity decreased significantly due to share repurchase from Blackstone.

“Total equity decreased from $473 million to $366 million... repurchase of shares from Blackstone has been accounted for as treasury stock.”