FOA Q3 Funded Volume Rises 24% as GAAP Loss Widens

Finance of America Companies Inc. (NYSE: FOA) reported higher reverse-mortgage production and stronger liquidity for the third quarter of 2026, while fair-value changes contributed to a sizable GAAP loss and adjusted earnings declined from the previous quarter. The company said it remains on track for full-year funded volume of $2.8 billion, at the low end of its guidance range.

FOA, which describes itself as the largest U.S. reverse-mortgage platform with an approximately 36% market share, recorded third-quarter submission volume of $1.1 billion, up 20% from a year earlier. Funded volume increased 24% to $748 million.

The company reported a third-quarter GAAP net loss of $110 million. Adjusted net income, which excludes fair-value changes and other specified items, was $6 million, or $0.28 per share, compared with $19 million, or $0.84 per share, in the second quarter.

The reconciliation included $125 million of changes in fair value during the quarter, up from $84 million in the prior quarter. Those changes cover loans, retained bonds and related obligations affected by market inputs or model assumptions, as well as certain liabilities, convertible notes and senior-note discount amortization.

For the first nine months of 2026, FOA posted a GAAP net loss of $103 million, or $3.49 per share, compared with net income of $131 million in the corresponding 2025 period. Year-to-date adjusted net income was $51 million, or $2.26 per share, down from $60 million, or $2.33 per share, a year earlier.

Retirement Solutions production grows

Adjusted net income from Retirement Solutions was $9 million in the third quarter, down from $15 million in the second quarter. The segment’s revenue margin, calculated as revenue divided by funded volume, was 9.0%, compared with 10.6% for the first half of 2026. The presentation attributed the lower margin to the timing impact of higher interest rates and said management expects growing demand and a normalized revenue margin going forward.

FOA also highlighted higher productivity within its retail channel. From the second to the third quarter, retail opportunity count fell 12%, but submission count increased 2% and funded-loan count rose 9%. Funded volume per loan officer was 40% higher than in the third quarter of 2025, indicating that the company generated more production from its existing demand base.

Management said submission and funded volumes have grown at annualized rates of 21% and 20%, respectively, since 2023. For 2027, FOA’s outlook calls for funded-volume growth of 10% to 20%.

Cash generation supports debt reduction

Cash and cash equivalents increased by $33 million during the quarter to $118 million from $85 million at the end of June. Originations and capital-markets activities generated $29 million of cash in the quarter and $145 million during the first nine months of the year.

FOA said the liquidity generated through its call-and-reissue program, together with cash on hand, provided funding for a $60 million paydown of senior secured debt in November 2026. Management expects internal capital generation to support its continued deleveraging strategy.

Portfolio Management produced adjusted net income of $11 million, compared with $18 million in the second quarter. During the period, FOA completed the onboarding and integration of Onity’s home-equity conversion mortgage servicing portfolio. It also completed a $1.0 billion proprietary securitization in September, which the company said received strong demand.

Management expects Portfolio Management to generate a stable yield on a growing portfolio. The company also anticipates returns from investments in marketing and technology, although those expectations remain forward-looking.

FOA ended the quarter with total equity of $307 million and book value of $28.08 per common share, down 15% from $33.20 at the end of the second quarter. Corporate and other operations recorded an adjusted net loss of $14 million, compared with a $13 million loss in the prior quarter.

The company cautioned that quarterly results may not indicate full-year or future performance. Its outlook is subject to uncertainty surrounding business performance, liquidity, capital resources, market inputs and model assumptions, among other risks described in its regulatory filings.