Finance Of America Companies Inc Stock Price, News & Analysis

Finance of America Companies (NYSE: FOA) has announced its acquisition of American Advisors Group (AAG), a direct-to-consumer reverse mortgage lender, for cash and equity. This strategic acquisition aims to enhance FOA's growth in home equity solutions for retirees. The deal is expected to bolster both Tangible Book Value and Earnings Per Share, with completion anticipated in the first half of 2023, subject to regulatory approvals. Additionally, stockholders, including founder Brian L. Libman, will invest $30 million in a private placement to support the transaction.

Finance of America Companies (FOA) reported a net loss of $302 million or $1.35 per share for Q3 2022, influenced by non-cash balance sheet adjustments and the decision to discontinue its Mortgage Originations segment. Adjusted net income from Specialty Finance and Services was $7 million, while Reverse Originations generated $34 million in pre-tax income. Despite strong liquidity with $169 million in cash, total revenue dropped 84% year-over-year to $71 million, driven by a 53% decline in funded volume. The company aims to optimize resources by focusing on high-growth areas.

Finance of America Companies (NYSE: FOA) will release its third-quarter results for the period ending September 30, 2022, on November 9, 2022, before market opening. A webcast and conference call will follow on the same day at 8:00 am ET to discuss the results. Interested parties can access the earnings release and investor presentation on the company’s website prior to the call. The replay will be available for two weeks post-call.

Finance of America Companies (NYSE: FOA) announced the discontinuation of its forward mortgage originations segment by year-end, reallocating resources to high-growth areas such as reverse mortgages and home improvement loans. This strategic pivot aims to optimize operations and enhance partnerships with large mortgage lenders. FOA highlighted its strong reverse mortgage platform and growing commercial business, while committing to support affected employees. The company plans to leverage its capital markets capabilities to connect originated loans with institutional investors, ensuring continued growth potential.

Finance of America Reverse (FAR) has entered into a partnership with Morningstar, enabling access to retirement education for 150,000 financial advisors in the U.S. FAR will provide tools showing how home equity can stabilize retirement plans, targeting clients aged 55 and older. This initiative aims to improve financial advisors' understanding of reverse mortgages and home equity products. A recent survey indicates many advisors do not discuss home equity options, despite clients wanting such discussions. FAR's collaboration seeks to bridge this gap and empower both advisors and clients in retirement planning.

Finance of America Companies Inc. (NYSE: FOA) reported a net loss of $168 million for Q2 2022, equating to $(0.65) per basic share, driven by negative fair value marks amid rising credit spreads. The adjusted net loss was $22 million, or $(0.12) per diluted share. Total revenue fell by 47% to $141 million while total expenses decreased by 10% to $310 million. The Mortgage Originations segment faced significant challenges with a 39% drop in funded volume year-over-year. The company aims to enhance margins and has reduced operational expenses in response to market volatility.

Finance of America Companies (NYSE: FOA) will release its second quarter results for the period ending June 30, 2022, on August 4, 2022, after market close. A conference call and webcast will follow at 5:00 PM Eastern Time on the same day to discuss the financial results. Interested parties can access the investor presentation via the company’s website. The call can be joined by dialing 800-267-6316 (domestic) or 203-518-9783 (international), with the conference ID FOAQ222. A replay will be available until August 11, 2022.