Finance of America panies (US:FOA)2022-08-07 16:02Market 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]