Reverse-mortgage
The number of eliminated positions was not disclosed, but cuts were spread across departments, the company confirmed.
"Finance of America continually evaluates all aspects of our business to improve operating performance and execute against our strategic plan for long-term growth," Finance of America Cos. President Kristen Sieffert said in a statement sent to National Mortgage News.
"Accordingly, we are refining our expenses and eliminating some roles in our retail and corporate divisions as our business simplifies."
Once active across multiple origination channels, the company
At the end of 2023, the company employed 922 individuals in the U.S., according to its annual report filed with the Securities and Exchange Commission. The number reflected a reduction of 53% from a headcount of 1,943 at the end of 2022.
"Our core focus is on creating a modern retirement that centers on home equity, and we will continue to make decisions that strengthen our platform and our ability to deliver for our customers, teammates and investors," Sieffert noted.
In the first quarter, Finance of America reported employee salaries, benefits and related costs amounted to approximately $39 million in expenses. Meanwhile, the company's unrestricted cash balance at the end of March was $48 million. In its earnings call, officials also stated it was looking at options to address high-yield debt maturing in the fourth quarter of 2025.
The layoffs come after Finance of America successfully finished integrating the assets of fellow reverse mortgage lender American Advisors Group,
Finance of America recently set a goal year of eventually
In recent months, the Plano, Texas-based company has also faced scrutiny and warnings of
At the time of the first warning issued to Finance of America on Dec. 12, its stock closed trading at 86 cents. Approximately two months later, the company received a second warning, with its value at 98 cents. Following each notice, the company said it would notify the NYSE of actions it planned to take to gain compliance within a six-month cure window.
At the close of trading on Tuesday, shares of Finance of America sat at 60 cents, finishing above the $1.00 threshold on only 10 days so far this year.