Finance of America Reports $28.9 Million Net Loss in Q2 2026

Finance of America Companies Inc. (FOA) reported its financial results for the second quarter of 2026, revealing a significant decline in profitability compared to the same period in 2025. The company recorded a net loss of $28.9 million for the quarter, a stark contrast to a net income of $79.8 million in the prior year. This downturn was primarily attributed to a $126.5 million decrease in fair value changes from market inputs or model assumptions, which resulted in net fair value losses. Total revenues for the quarter fell to $62.5 million, down from $177.4 million in the previous year, largely due to reduced origination gains and adverse market conditions.

In terms of operational metrics, FOA's net origination gains increased to $66.6 million, up from $56.1 million, driven by higher reverse mortgage loan origination volumes, which reached $730 million for the quarter. However, the overall financial performance was hampered by rising expenses, which totaled $106.1 million, compared to $89.1 million in the same quarter last year. The increase in expenses was primarily due to higher salaries, benefits, and marketing costs associated with the company's growth initiatives.

Strategically, FOA completed the acquisition of certain assets and liabilities from Onity Mortgage Corporation on June 30, 2026, enhancing its reverse mortgage loan origination and servicing capabilities. This acquisition is expected to bolster FOA's position in the market and expand its product offerings. The company has also been actively enhancing its digital capabilities and marketing strategies, including the launch of a new second lien reverse mortgage line of credit and partnerships with mortgage servicers to broaden its reach.

As of June 30, 2026, FOA's total assets increased to $37.3 billion, up from $30.7 billion at the end of 2025, driven by a rise in loans held for investment. The company reported a total equity of $406.7 million, reflecting a slight increase from $395.6 million at the end of the previous year. Looking ahead, FOA remains focused on expanding its core retirement solutions business and enhancing its marketing and digital capabilities to navigate the challenging economic landscape and capitalize on the growing demand for home equity-based financing solutions.