Finance of America records quarterly loss, full-year profit

Finance of America Companies Inc. slipped into the red in the fourth quarter of 2024, but over the full year, it narrowed its losses from 2023 and ultimately returned to profitability.

The reverse mortgage lending giant reported a $142.63 million net loss for the quarter. It recorded $35.69 million net income for 2025 as a whole. Adjusted results for continuing operations were more positive for the year at $40.42 million.

FOA's quarterly number under standard accounting principles represented a decline from positive earnings a year earlier and in the previous fiscal period. However, the year-over-year trend, and an estimated 25% to 30% growth in origination volume the first quarter this year have made company leadership optimistic.

"We remain confident in our strategic direction and the long term value of our business," said CEO Graham Fleming during the company's earnings call.

Finance of America strength lies in its position as the largest player in the reverse mortgage business. It bought industry leader American Advisors Group in late 2022, and it has been the top issuer of government-backed reverse mortgage securitizations.

That could give the company a boost if a planned government securitization program called HMBS 2.0 takes off, but executives said during the call the initiative's timeline is uncertain. Spending scrutiny in Washington has broadly raised questions about future projects.

Meanwhile, FOA has been working to unify the company under a single brand and has a better sense of the completion date for that project. President Kristen Sieffert said during the call that the platform and brand transition will go live later this year.

"By June we'll be fully transitioned over," she said.

In addition to offering loans to adults age 62 and up through the government's program, FOA has been marketing private-market products like the HomeSafe second lien for borrowers 55 or older through its direct-to-consumer channel. That product grew almost 400% during the year.

The company engaged in the largest proprietary loan securitization in its history last month, Chief Financial Officer Matt Engel said during the call.

"This transaction included a mix of new and seasoned collateral, demonstrating our ability to execute complex capital market transactions at scale," he said, noting that this has supported growth in funded loan volume.

Last year, volume overall increased by 19%, thanks in part to $534 million in production during the quarter that exceeded guidance, according to the company.

In its effort to grow, FOA has been leaning into sales supported by its online platform, adding two new executives to its C-suite with digital marketing experience outside the mortgage industry.

New Chief Information Officer Brian Coneen previously worked at Best Egg, a provider of personal loans. Chief Customer Officer Karime Benaissa came to the company after having worked with global retail businesses like Amazon, Petco and Neiman Marcus. 

While the company has struggled with profitability and also has been contending with high leverage and low liquidity, it did recently reduce its refinancing risk by entering a debt exchange extending maturities into 2026 last year, according to Fitch report on the company in December.

The company's stock price was wavering in after-hours trading at deadline late Tuesdays having initially fallen from levels that topped $21 per share during the day to below $16, but then later rising back above $17.