Financial Data and Key Metrics Changes - For the second quarter, the company reported GAAP net income attributable to common shareholders of $20 million, or $2.4 per share fully diluted, reflecting an annualized ROE of 17% [6][23] - Adjusted pretax income was $16 million, with an annualized adjusted ROE of 14%, impacted by $4 million from market volatility on originations revenue and margins [7][26] - Book value increased to $60 per share, up 5% year over year [7] Business Line Data and Key Metrics Changes - The servicing segment contributed $31 million to adjusted pretax income for the quarter, with forward servicing experiencing growth in average UPB [30] - Originations team delivered 35% year-over-year growth, compared to the industry's 23% growth [14] - Consumer Direct's funded volume was up 2.4 times versus the previous year, indicating strong recapture performance [15][17] Market Data and Key Metrics Changes - The Mortgage Bankers Association Refinance Application Index was up 43% over the prior year, indicating strong origination volumes despite market volatility [9] - Industry originations volume growth estimates have been lowered to 14% year over year due to interest rate expectations and slower home sales [10] Company Strategy and Development Direction - The company is focused on maintaining agility to find opportunities for shareholder value creation amid market volatility [10][36] - Continued investment in technology and process optimization is aimed at enhancing customer experience and improving scalability [14][20] - The company is increasing its owned MSR portfolio to grow book earnings and book value, while also pursuing new subservicing clients [12][31] Management's Comments on Operating Environment and Future Outlook - Management expects continued interest rate volatility and uncertainty, but believes the balanced business model is well-positioned for the dynamic market environment [10][36] - The company is optimistic about its potential for growth and shareholder returns, reaffirming its annual adjusted ROE guidance [35][34] Other Important Information - The company has been recognized for its industry-leading servicing performance by Fannie Mae, Freddie Mac, and HUD [19] - The MSR hedge strategy has been effective in minimizing the impact of interest rates on MSR valuation [33] Q&A Session Summary Question: Inquiry about professional services expenses - Management noted that professional expenses can vary based on financing structures and legal fees, with no significant issues in the current quarter [38] Question: Clarification on deferred tax assets - Management explained that counterparties generally view the increase in deferred tax assets as an improvement in total equity, and detailed the components that affect the valuation allowance [39][40] Question: M&A activity in servicing - Management indicated that M&A activity in servicing is influenced by supply and demand dynamics in the marketplace, with potential consolidation expected due to prolonged high interest rates [44][46]

Financial Data and Key Metrics Changes - The company reported $561 million in funded volume for Q1 2025, exceeding guidance and marking a 32% increase compared to Q1 2024 [5][6][15] - GAAP net income was $80 million or $3.17 per basic share, a significant turnaround from a net loss of $16 million or $0.58 per share in Q1 2024 [6][16] - Adjusted net income improved to $13 million or $0.52 per share, up $20 million year-over-year from an adjusted net loss of $7 million in Q1 2024 [6][17] - Adjusted EBITDA totaled $29 million, reflecting an increase from breakeven in Q1 2024 and an $11 million improvement from Q4 2024 [17] Business Line Data and Key Metrics Changes - The company experienced a 5% increase in funded volume from Q4 2024, indicating consistent growth across its operations [15] - Product level margins improved quarter-over-quarter, although total Retirement Solutions revenue margin remained flat due to a shift in channel mix [18] Market Data and Key Metrics Changes - The company benefited from a lower rate environment, with the ten-year treasury falling approximately 35 basis points, contributing to a positive fair value environment [6] - The wholesale channel exceeded volume expectations, although it carries lower margins, impacting overall revenue margin [18] Company Strategy and Development Direction - The company launched the "A Better Way with FOA" campaign to reposition reverse mortgages as a mainstream financial planning tool for homeowners aged 55 and up [7][10] - The strategic focus is on enhancing customer engagement and optimizing the customer journey, with early results showing a 16% improvement in inquiry to lead conversion [11][12] - The company aims to introduce new solutions to address emerging customer needs amid economic uncertainties [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet its full-year guidance of $2.4 billion to $2.7 billion in funded volume and $2.6 to $3 in adjusted earnings per share [6][20] - The company noted that April was the best month for submission and funded volume in the last two years, indicating strong market performance [24] - Management acknowledged ongoing rate volatility but indicated it has not significantly impacted volumes thus far [25] Other Important Information - The company has seen a 25% year-over-year reduction in general and administrative expenses, highlighting ongoing cost management efforts [19] - Operational productivity improved, with a 33% increase in loans per employee compared to Q1 2024 [20] Q&A Session Summary Question: How did rate volatility in April impact volumes? - Management noted that April was the best month for submission and funded volume in the last two years, indicating strong performance despite rate volatility [24] Question: What is the outlook for expenses going forward? - Management indicated that the fixed cost base is relatively stable, with opportunities for cost reductions as contracts renew, while variable expenses may increase with production [26][27]

Strategic Goals - Finance of America aims to mainstream home equity for retirement by positioning reverse mortgages alongside common financing options[4] - The company intends to break the adoption barrier and increase customer numbers by elevating its brand and offering a customer-centric experience[4] - Finance of America is targeting homeowners 55+ to leverage their home equity for retirement[13] Key Initiatives - Finance of America is modernizing messaging, developing progressive digital experiences, and providing unparalleled customer care to attract a new kind of borrower[5] - The company launched the "A Better Way with FOA" campaign[6] - Finance of America is using performance ads to bring reverse mortgages from the fringe to the mainstream[8] - Finance of America is setting a new standard as the voice of the category through consumer education[11] Brand Positioning - The "Better Way" brand platform positions Finance of America as a trusted partner[13]