Finance of America pays a profit in Q1 2025
The company also saw the first quarter of the year as a “strategic turning point” for the FOA brand, according to CEO Graham Fleming.
Brand movements
“With the recent launch of our new campaign ‘A Better Way With Foa’, we redefine how reverse mortgages are understood, which moves the product from margins to the mainstream as a flexible, future -oriented financial planning tool for homeowners 55 and higher,” Fleming said.
“Finance of America determines De Standaard for how our industry communicates the role of reverse mortgages.”
At the beginning of last month, the company announced that it had registered a new creative agency. A few weeks later it launched the “Better Way” campaign.
But after product positioning, FOA remains aimed at its product range, including the only closed-end second retention right of the reverse mortgage industry, home-hedging second.
‘[W]He keep seeing the benefits of our flexibility of our product suite by offering a wider range of solutions, “said Fleming.”[Through] The possibility to introduce new products to meet the emerging needs, we can better serve our customers. With this approach, our customers have access to the most suitable products to support their individual needs and circumstances. “
FOA President Kristen Sieffert also spoke to the new campaign and said it marks a change in the direction.
“This campaign marks a shift from the traditional approval of celebrities to tell stories that are a reflection of goals in real life and ambitions of today’s homeowners,” she said.
Ashley Smith, senior vice president of brand and communication at FOA, recently also touched this sentiment when discussing broader industrial outreach efforts with Housing‘S Reverse MortGage Daily (RMD) at last week National Reverse MortGage Lenders Association (NRMLA) Western regional meeting in Irvine, California.
“The more we can normalize [reverse mortgages] and make [them] Mainstream, the better it will be for this industry, this category and finances of America, “said Smith during the event.
“A part of our growth strategy is to make equity for pension mainstream, so this is something we really believe in and think that it is now important for industry.”
Financial performance
Matt Engel, Chief Financial Officer of FOA, described the financial performance for the quarter as a strong “in various important statistics”, including financed volume growth and “meaningful improvement” in Gaap -Netto results.
Spreads were somewhat larger in the quarter, but the overall ratings were positive as a result of “falling basic rates and stable appreciation for the appreciation for home prize,” Engel said.
The company has passed an adapted net loss of $ 7 million in Q1 2024. A year later, this measure improved by $ 20 million, which Angel attributed to “higher volumes, a fully integrated business and disciplined cost management”.
While the segment of the company’s pension solutions saw a flat turnover margins in the first quarter of 2025, the wholesale channel of the company exceeded expectations and FOA was able to defeat its general investment guidance. Efficiencies in original were also emphasized.
“We originated at higher volumes with a more streamlined team, which led to an increase in loans per employee of 33% on our origin platform compared to the first quarter of 2024,” Engel said.
“We expect to continue to see this trend up because of the scalability of our model and the advantage of our continuous digital transformation.”
Maintaining growth projections
Engel described the company’s liquidity situation as ‘adequate’, adding that FOA maintains ‘healthy financing capacity’ to support its growth projections.
With regard to these projections, the company confirms “our full annual guidance for both volume and income,” said Engel. This includes $ 2.4 billion to $ 2.7 billion in origination volume, along with $ 2.60 to $ 3 in adapted profit per share]. In the second quarter alone, it projects the volume from $ 575 million to $ 600 million.
During the Q&A part of the call, Fleming said that April 2025 “was actually our best entry and financed volume month in the past two years, so a very strong volume in April.”
The stock market responded positively to the FOA’s winning report. From 5 pm Eastern time on Wednesday, The company’s share price Had increased by more than 11% in the last 24 hours and it has grown almost 8% in the last 30 days.
“As the biggest founder of reverse mortgages in the country, we believe that we are well positioned to meet the moment,” said Fleming.
