Finance of America reports $110 million loss despite volume growth
Mortgage lender posts $110 million loss despite 24% jump in funded volume, citing fair value adjustments.
(Photo via HousingWire)
Finance of America reported a GAAP net loss of $110 million for the third quarter of 2026, a result primarily driven by $125 million in noncash fair value adjustments. Despite the bottom-line loss, the company saw its funded volume rise 24% year over year to $748 million.
The company, which holds approximately 36% of the reverse-mortgage market, faced significant pressure on origination margins due to higher benchmark interest rates. CEO Graham A. Fleming noted that the firm recorded $167 million in unfavorable noncash changes in the fair value of its portfolio assets and liabilities during the first nine months of 2026.
Adjusted net income for the quarter reached $6 million, or $0.28 per share, missing analyst consensus estimates of $1.26 per share. In response to the financial results reported on Nov. 3, the company has withdrawn its full-year 2026 adjusted EPS guidance.
Looking ahead, management plans to repay $60 million of senior secured notes in November 2026 and extend approximately $90 million of remaining debt to November 2027. CEO Fleming characterized the impact of higher interest rates on earnings as temporary, and the company expects margins to normalize in the first half of 2027.