Finance of America (FOA), a leading reverse mortgage provider, reported a loss in the fourth quarter of 2024 but still managed to achieve a full-year profit.
During an earnings call, company executives discussed their outlook for the reverse mortgage market in 2024, highlighting the strategic objectives they accomplished throughout the year. The company also announced the appointment of two new executives tasked with developing digital tools for the organization.
Although the news of a quarterly loss initially impacted the company’s stock price, it eventually rebounded. CEO Graham Fleming emphasized the company’s achievements in integrating its retail platform, finalizing a corporate bond exchange, and increasing funding facilities, positioning them well for future strategic objectives.
In 2024, FOA saw a 19% increase in funding volume to $1.9 billion and significant growth in the distribution of its proprietary closed-end second-lien reverse mortgage, “HomeSafe Second.” The company expanded the availability of HomeSafe Second to more states and revised certain terms to attract more customers.
Company President Kristen Sieffert expressed optimism about the market potential for HomeSafe Second, citing significant growth opportunities. Fleming underscored the company’s commitment to making home equity a key component of retirement planning.
Despite a quarterly loss, FOA reported a GAAP net income of $40 million and adjusted net income of $14 million for the full year 2024. CFO Matt Engel acknowledged the challenges posed by market conditions but highlighted the company’s strong performance and leadership in the Home Equity Conversion Mortgage (HECM) sector.
FOA’s focus on cost reduction, streamlined corporate structure, and successful securitization transactions demonstrate its ability to navigate complex financial markets. Engel also addressed the impact of fluctuating interest rates on the industry, noting the company’s resilience in adapting to market changes.
Overall, FOA remains confident in its long-term value and strategic direction, aiming to continue expanding its market presence and product offerings in the coming years.