Finance of America Companies Inc.FOA
Finance of America Companies Inc. Segments Disclosure
24. Business Segment Reporting
The following tables are a presentation of financial information by segment (in thousands):
| For the year ended December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Retirement Solutions | Portfolio Management | Total Reportable Segments | Corporate and Other | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||
| Portfolio interest income | ||||||||||||||||||||||||||||||||||||||||||||
| Interest income | $ | — | $ | 1,905,214 | $ | 1,905,214 | $ | — | $ | — | $ | 1,905,214 | ||||||||||||||||||||||||||||||||
| Interest expense | — | (1,637,286) | (1,637,286) | — | — | (1,637,286) | ||||||||||||||||||||||||||||||||||||||
| Net portfolio interest income | — | 267,928 | 267,928 | — | — | 267,928 | ||||||||||||||||||||||||||||||||||||||
| Other income (expense) | ||||||||||||||||||||||||||||||||||||||||||||
| Net origination gains | 179,837 | — | 179,837 | — | — | 179,837 | ||||||||||||||||||||||||||||||||||||||
| Gain on securitization of HECM tails, net | — | 45,535 | 45,535 | — | — | 45,535 | ||||||||||||||||||||||||||||||||||||||
| Fair value changes from model amortization | — | (201,101) | (201,101) | — | — | (201,101) | ||||||||||||||||||||||||||||||||||||||
| Fair value changes from market inputs or model assumptions | — | 55,924 | 55,924 | — | — | 55,924 | ||||||||||||||||||||||||||||||||||||||
| Net fair value changes on loans and related obligations | 179,837 | (99,642) | 80,195 | — | — | 80,195 | ||||||||||||||||||||||||||||||||||||||
| Fee income | 26,553 | 3,183 | 29,736 | — | (492) | 29,244 | ||||||||||||||||||||||||||||||||||||||
| Gain (loss) on sale and other income from loans held for sale, net | (76) | 378 | 302 | — | — | 302 | ||||||||||||||||||||||||||||||||||||||
| Non-funding interest expense, net | — | — | — | (39,498) | — | (39,498) | ||||||||||||||||||||||||||||||||||||||
| Net other income (expense) | 206,314 | (96,081) | 110,233 | (39,498) | (492) | 70,243 | ||||||||||||||||||||||||||||||||||||||
| Total revenues | 206,314 | 171,847 | 378,161 | (39,498) | (492) | 338,171 | ||||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Salaries, benefits, and related expenses | 83,448 | 15,513 | 98,961 | 39,399 | — | 138,360 | ||||||||||||||||||||||||||||||||||||||
| Loan production and portfolio related expenses | 7,887 | 28,318 | 36,205 | — | — | 36,205 | ||||||||||||||||||||||||||||||||||||||
| Loan servicing expenses | — | 31,323 | 31,323 | — | — | 31,323 | ||||||||||||||||||||||||||||||||||||||
| Marketing and advertising expenses | 39,337 | 41 | 39,378 | 51 | — | 39,429 | ||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 37,751 | 77 | 37,828 | 1,119 | — | 38,947 | ||||||||||||||||||||||||||||||||||||||
| General and administrative expenses | 26,521 | 12,177 | 38,698 | 21,256 | (492) | 59,462 | ||||||||||||||||||||||||||||||||||||||
| Total expenses | 194,944 | 87,449 | 282,393 | 61,825 | (492) | 343,726 | ||||||||||||||||||||||||||||||||||||||
| Impairment of other assets | (291) | — | (291) | (600) | — | (891) | ||||||||||||||||||||||||||||||||||||||
| Gain on extinguishment of debt | — | — | — | 56,193 | — | 56,193 | ||||||||||||||||||||||||||||||||||||||
| Other, net | (174) | — | (174) | (6,757) | — | (6,931) | ||||||||||||||||||||||||||||||||||||||
| Net income (loss) before taxes | $ | 10,905 | $ | 84,398 | $ | 95,303 | $ | (52,487) | $ | — | $ | 42,816 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 250,519 | $ | 28,877,278 | $ | 29,127,797 | $ | 1,343,803 | $ | (1,317,561) | $ | 29,154,039 | ||||||||||||||||||||||||||||||||
| For the year ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Retirement Solutions | Portfolio Management | Total Reportable Segments | Corporate and Other | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||
| Portfolio interest income | ||||||||||||||||||||||||||||||||||||||||||||
| Interest income | $ | — | $ | 1,628,877 | $ | 1,628,877 | $ | — | $ | — | $ | 1,628,877 | ||||||||||||||||||||||||||||||||
| Interest expense | — | (1,360,998) | (1,360,998) | — | — | (1,360,998) | ||||||||||||||||||||||||||||||||||||||
| Net portfolio interest income | — | 267,879 | 267,879 | — | — | 267,879 | ||||||||||||||||||||||||||||||||||||||
| Other income (expense) | ||||||||||||||||||||||||||||||||||||||||||||
| Net origination gains | 121,646 | — | 121,646 | — | — | 121,646 | ||||||||||||||||||||||||||||||||||||||
| Gain on securitization of HECM tails, net | — | 25,583 | 25,583 | — | — | 25,583 | ||||||||||||||||||||||||||||||||||||||
| Fair value changes from model amortization | — | (228,391) | (228,391) | — | — | (228,391) | ||||||||||||||||||||||||||||||||||||||
| Fair value changes from market inputs or model assumptions | — | 58,696 | 58,696 | — | — | 58,696 | ||||||||||||||||||||||||||||||||||||||
| Net fair value changes on loans and related obligations | 121,646 | (144,112) | (22,466) | — | — | (22,466) | ||||||||||||||||||||||||||||||||||||||
| Fee income | 33,167 | 10,283 | 43,450 | 8,125 | (8,125) | 43,450 | ||||||||||||||||||||||||||||||||||||||
| Loss on sale and other income from loans held for sale, net | (6,303) | (18,691) | (24,994) | — | — | (24,994) | ||||||||||||||||||||||||||||||||||||||
| Non-funding interest expense, net | — | — | — | (29,619) | — | (29,619) | ||||||||||||||||||||||||||||||||||||||
| Net other income (expense) | 148,510 | (152,520) | (4,010) | (21,494) | (8,125) | (33,629) | ||||||||||||||||||||||||||||||||||||||
| Total revenues | 148,510 | 115,359 | 263,869 | (21,494) | (8,125) | 234,250 | ||||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Salaries, benefits, and related expenses | 96,574 | 19,874 | 116,448 | 61,871 | — | 178,319 | ||||||||||||||||||||||||||||||||||||||
| Loan production and portfolio related expenses | 9,555 | 16,935 | 26,490 | — | — | 26,490 | ||||||||||||||||||||||||||||||||||||||
| Loan servicing expenses | — | 30,729 | 30,729 | — | — | 30,729 | ||||||||||||||||||||||||||||||||||||||
| Marketing and advertising expenses | 31,668 | 24 | 31,692 | 204 | — | 31,896 | ||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 40,571 | 107 | 40,678 | 1,691 | — | 42,369 | ||||||||||||||||||||||||||||||||||||||
| General and administrative expenses | 30,468 | 16,354 | 46,822 | 43,507 | (8,125) | 82,204 | ||||||||||||||||||||||||||||||||||||||
| Total expenses | 208,836 | 84,023 | 292,859 | 107,273 | (8,125) | 392,007 | ||||||||||||||||||||||||||||||||||||||
| Impairment of intangibles and other assets | — | (6,400) | (6,400) | (2,896) | — | (9,296) | ||||||||||||||||||||||||||||||||||||||
| Other, net | 75 | — | 75 | 136 | — | 211 | ||||||||||||||||||||||||||||||||||||||
| Net income (loss) before taxes | $ | (60,251) | $ | 24,936 | $ | (35,315) | $ | (131,527) | $ | — | $ | (166,842) | ||||||||||||||||||||||||||||||||
| Total assets | $ | 276,605 | $ | 26,773,101 | $ | 27,049,706 | $ | 1,521,058 | $ | (1,469,895) | $ | 27,100,869 | ||||||||||||||||||||||||||||||||
The Company has identified two reportable segments: Retirement Solutions and Portfolio Management. The CODM are certain officers of the Company, which include the Chief Executive Officer, Chief Financial Officer, and Chief Investment Officer. The CODM evaluates the performance of the Company’s segments based on net income (loss) before taxes. The CODM uses this reported measure along with periodic reviews of results and overall market activity to allocate resources to segments in the planning and forecasting process.
Retirement Solutions
Our Retirement Solutions segment conducts all of our Company’s loan origination activity, including the origination and acquisition of HECM and non-agency reverse mortgage loans through both the retail and third-party originator channels. The Retirement Solutions segment generates revenue from fees earned at the time of loan origination as well as from the initial estimate of net origination gains, with all originated loans accounted for at fair value. Once
originated, the loans are transferred to our Portfolio Management segment, and any future fair value adjustments, including interest earned, on these originated loans are reflected in the revenues of our Portfolio Management segment until final disposition.
The Company sold the operational assets of its home improvement lending business and substantially completed the process of winding down the operations of the home improvement lending business as of March 31, 2024. For reporting purposes, the previous operations of the home improvement lending business are reported as part of the Company’s Retirement Solutions segment rather than as discontinued operations as the wind-down of the home improvement lending business was not considered by the Company to be a strategic shift that has had or will have a major effect on our operations and financial results.
Portfolio Management
Our Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services to the Company. Our Portfolio Management team acts as the connector between borrowers and investors. The direct connections to investors, provided by our Financial Industry Regulatory Authority (“FINRA”) registered broker-dealer, allows us to innovate and manage risk through better price and product discovery. Given our scale, we are able to work directly with investors and, where appropriate, retain assets on the balance sheet for attractive return opportunities. These retained investments are a source of growing and recurring interest and other servicing-related income. The Portfolio Management segment primarily generates revenue from the net interest income and fair value changes on portfolio assets, monetized through securitization, sale, or other financing of those assets.
Corporate and Other
Corporate and Other consists of our corporate services groups, which support the operations of our Company.
The Company’s segments are based upon the Company’s organizational structure which focuses primarily on the services offered. Corporate functional expenses are allocated to individual segments based on actual cost of services performed based on a direct resource utilization, estimate of percentage use for shared services, or headcount percentage for certain functions. Non-allocated corporate expenses include administrative costs of executive management and other corporate functions that are not directly attributable to the Company’s reportable segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. To reconcile the Company’s consolidated results, certain inter-segment revenues and expenses are eliminated in the “Eliminations” column in the previous tables.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 14, 2025 | Showing above |
| 2023 | Mar 15, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.