UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40308 _________________________ FINANCE OF AMERICA COMPANIES INC. (Exact ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40308 FINANCE OF AMERICA COMPANIES INC. (Exact name of registrant as specified in its charter) (State or other ...

Financial Data and Key Metrics Changes - The company recorded a net loss of $168 million or $0.70 per fully diluted share for Q2 2022, primarily due to operating losses and balance sheet write-downs [8][10] - On an adjusted basis, the company generated an adjusted net loss of $22 million, largely attributed to the Mortgage Originations segment due to a significant drop in refinance volumes [10][32] - Tangible equity decreased by $155 million, mainly due to non-cash fair value marks from wider spreads [33] Business Line Data and Key Metrics Changes - Mortgage Originations revenue decreased by 24% compared to Q1 2022, with a 29% decline in net rate lock volume, resulting in a $21 million adjusted net loss [34] - Reverse Origination segment achieved a record funded volume of $1.58 billion in Q2, a 7% increase quarter-over-quarter, but revenue decreased by 26% due to margin compression [21][36] - Commercial Originations originated $540 million in funded volume, a slight decline from Q1, with expectations of lower volumes in Q3 due to rising rates [23][38] - Lender Services revenue fell by 24% quarter-over-quarter, impacted by lower refinance volumes, but advisory income saw strong growth [39] Market Data and Key Metrics Changes - The tenure increased by 115 basis points to 3.49% and then decreased by 51 basis points to close the quarter at 2.98%, resulting in a 64 basis point increase for the quarter [29] - Spreads on both agency and non-agency mortgages reached new highs, significantly impacting the Origination businesses and balance sheet [30] Company Strategy and Development Direction - The company is focused on three strategic priorities: optimizing the mortgage business, investing in Specialty Financing Services, and leveraging technology to transform into a customer-centric organization [15][26] - The company aims to capitalize on the growing purchase market, with purchase originations currently comprising approximately 85% of total volume [18] - The Home Improvement business is expected to become an effective customer acquisition channel, with plans to cross-sell additional products [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market challenges and emphasized the long-term fundamentals of the business remain sound [14][27] - The company anticipates continued volatility in the market but expects margins to improve as conditions stabilize [42] - Management is not providing specific financial guidance due to market uncertainty but remains optimistic about long-term growth opportunities [42] Other Important Information - The company has reduced overall headcount and expenses by approximately 20% since the beginning of the year to align with current market demand [11][12] - The company is actively managing costs and has implemented expense initiatives to right-size the business [11] Q&A Session Summary Question: Customer Growth Prospects - Management is optimistic about growing customers in the Reverse channel through education and strategic partnerships, and in the Mortgage business by filling geographic gaps [46][47] Question: Reverse Volume Projections - Management refrained from providing specific numbers for Reverse volumes but expressed optimism about long-term growth due to significant market opportunities [49][50] Question: Stock Repurchase Strategy - Management indicated no current intention to buy back stock, citing the need for equity to fund growth in the Reverse business and the importance of maintaining liquidity amid market volatility [55][56]

Market Trends and Impact - The 30-year fixed mortgage rate doubled from 2.9% in December 2020 to 5.8% by June 2022[9] - This increase comprised a 2.1% increase in the 10-year Treasury Yield and a 0.8% increase in credit spreads[9] - Non-QM spreads have increased over 130 bps since the end of 2020[14] Mortgage Business - Refinance volume dropped 64% between Q1 and Q2 2022 due to the rapid increase in rates and spreads[12] - This drop was partially offset by a 21% quarter-over-quarter growth in Purchase volumes[12] - Mortgage originations funded volume decreased 29%[11] Reverse and Commercial Businesses - In Q2 2022, 3-year swaps increased by 40 bps to 3.1% after peaking at 3.8% during the quarter[14] - Spreads widened by 40 bps to new highs during the same period[14] - Reverse mortgage volume was $1580 million in Q2 2022 with a revenue margin of 5.1%, compared to $1475 million and 7.3% in Q1 2022[15] - Commercial mortgage volume was $507 million in Q2 2022 with a revenue margin of 2.5%, compared to $499 million and 4.1% in Q1 2022[16] Financial Outlook - Q3 2022 Mortgage Adjusted Net Loss is expected to fall between Q1 ($-10 million) and Q2 ($-21 million)[20] - Q3 2022 SF&S Adjusted Net Income (Loss) is expected to fall between Q1 ($47 million) and Q2 ($-1 million)[20]

FINANCE of AME | --- | --- | |------------------------------------|-------| | | | | | | | Earnings Presentation \| Q1 2022 | | | | | | | | | May 2022 | | | ©2022 Finance of America Companies | | Disclaimer Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. The actual results of Finance of America Companies Inc., together with its subsidiaries and affiliate ...

Finance Of America Companies, Inc. (NYSE:FOA) Q1 2022 Earnings Conference Call May 9, 2022 5:00 PM ET Company Participants Patty Cook – Chief Executive Officer Michael Fant – Senior Vice President of Finance Johan Gericke – Chief Financial Officer Conference Call Participants Douglas Harter – Credit Suisse Steven Laws – Raymond James Blake Netter – Morgan Stanley Operator Good afternoon. Thank you for attending today's Finance of America First-Quarter 2022 earnings call. My name is Hanna, and I will be your ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Exact name of registrant as specified in its charter) For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40308 FINANCE OF AMERICA COMPANIES INC. 5830 Granite Parkway, Suite 400, Plano, Texas 75024 (Address of Principal Executive Offices) (Zip Code) (Mark One) ☒ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the annual period ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40308 FINANCE OF AMERICA COMPANIES INC. (Exact name of registrant as specified in its charter) (State or other ju ...

Financial Data and Key Metrics Changes - Finance of America reported $1.7 billion in revenue and adjusted net income of $308 million for the full year 2021 [6][27] - The company experienced a $1.36 billion pre-tax GAAP loss in Q4 2021, primarily due to an impairment of goodwill and intangible assets [20] - Adjusted net income for Q4 was $70 million, with fully diluted adjusted earnings per share of $0.37 [21] Business Line Data and Key Metrics Changes - Specialty Finance and Services (SF&S) accounted for 51% of total revenue in Q4, contributing $196 million in revenue and $73 million in adjusted net income [9][13] - The reverse origination segment achieved a revenue increase of 107% year-over-year, reaching $114 million in Q4 [24] - The commercial originations business generated record quarterly funded volume of $580 million, with a 157% revenue increase compared to 2020 [25] Market Data and Key Metrics Changes - The mortgage origination segment saw a 20% revenue decrease compared to Q3, resulting in a pre-tax loss of $8 million [23] - The non-agency proprietary product contributed 18% of total mortgage origination during Q4 [11] Company Strategy and Development Direction - The company is focused on three strategic priorities: optimizing the mortgage business, investing in high-growth SF&S businesses, and leveraging technology to transform into a customer-centric company [9][17] - The management aims to position the mortgage business for reduced refinance volume while capitalizing on growth in the purchase and non-agency market [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the tough environment in the mortgage industry, with a significant decrease in refinancing demand due to rising rates [8] - The company expects to see continued growth in the purchase market and non-agency products, despite the challenges in the refinancing segment [8][10] Other Important Information - The company plans to maintain cash reserves for continued investment in business growth rather than stock repurchase [42] - Patty Cook announced her retirement, expressing pride in the company's achievements and commitment to a smooth transition [30] Q&A Session All Questions and Answers Question: Impact of volatility on commercial and reverse margins - Management indicated that the pressure on margins is related to market volatility rather than competitive dynamics [33] Question: Profitability expectations for the home improvement business - Management expects the home improvement business to become profitable during the year, attributing current losses to setup costs [35] Question: Drivers of strong reverse mortgage volumes - Management noted that both increased awareness among first-time borrowers and home price appreciation are driving reverse mortgage volumes [37] Question: Expense guidance and variable costs in the forward mortgage business - Management is adjusting capacity for lower volumes and has reduced headcount to optimize the mortgage business [39] Question: Stock buyback considerations - Management is focused on conserving cash for business growth rather than stock repurchase at this time [42] Question: Market perception of the company's prospects - Management believes the market may not fully recognize the growth potential of the SF&S business, which counters the cyclicality of the mortgage sector [50]

Financial Performance & Impairment - Finance of America reported a net loss of $1336 million in Q4 2021, primarily due to a $1381 million impairment of goodwill and intangible assets[7, 8] - Excluding the impairment charge and related tax benefit, the company generated net income of $15 million for Q4 2021[7] - For the full year 2021, the company reported a net loss of $1177 million, also due to the impairment of goodwill and intangible assets[7, 10] - Adjusted Net Income for 2021 was $308 million, driven by 177% growth in Specialty Finance & Services (SF&S)[10] Segment Performance - SF&S segments accounted for 51% of total revenue in Q4 2021 and are expected to be the major driver of profitability in 2022[6] - The SF&S businesses demonstrated substantial growth, with a Compound Annual Growth Rate (CAGR) of 90% from 2019 to 2021[12] - Mortgage pre-tax income excluding impairment of goodwill and intangible assets was $(8) million in Q4 2021 and $96 million for the full year 2021[7] - SF&S pre-tax income excluding impairment of goodwill and intangible assets was $27 million in Q4 2021 and $89 million for the full year 2021[7] Strategic Priorities & Outlook - Management is focused on optimizing the Mortgage Originations segment, investing in high-growth businesses (Reverse, Commercial, Home Improvement, and Lender Services), and investing in technology and data[6] - Non-agency Mortgage volume grew 25% quarter over quarter, accounting for 18% of overall Mortgage volume in Q4 2021[8] - Q1 2022 projected revenue for Mortgage is $150-170 million with an Adjusted Net Income Margin of 0-2%, while SF&S is projected to have revenue of $230-250 million with an Adjusted Net Income Margin of 19-21%[24]