Finance Of America Companies Inc.
- Open
- 24.08
- Day high
- 27.99
- Day low
- 23.81
- Prev close
- 24.21
- Volume
- 62K
- Mkt cap
- $259M
- P/E (TTM)
- 10.8
- EPS (TTM)
- $2.54
- P/B
- 0.7
- P/S
- 0.1
- Yield
- —
- Per share
- —
- ▲Insiders net buying $1.5M over the last 3 months (2 open-market buys, 7 sales)
- 🏛Institutions mixed (13F)
Finance Of America Companies Inc. (FOA) is a Financial Services company listed on NYSE. The stock is up 18% over the past year. Over the trailing 3 months, insiders filed 2 open-market buys and 7 sales (SEC Form 4).
Finance Of America Companies Inc. (FOA) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FOA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.84 | $1.10 | +31.0% | $120M | +4.2% |
| Mar 10, 2026 | $0.65 | $0.69 | +6.6% | — | — |
| Nov 4, 2025 | $0.65 | $1.33 | +105.6% | $81M | -26.1% |
| Mar 11, 2025 | $0.45 | $0.21 | -53.3% | $289M | +266.6% |
| Mar 6, 2024 | $-0.80 | $-0.90 | -12.5% | $11M | -82.6% |
| Mar 13, 2023 | $-0.60 | $-3.00 | -400.0% | $94M | -34.4% |
| Nov 9, 2022 | $-0.60 | $-1.00 | -66.7% | $71M | -71.5% |
| Aug 4, 2022 | $1.40 | $-1.20 | -185.7% | $141M | -56.3% |
| Mar 2, 2022 | $3.50 | $3.70 | +5.7% | $383M | -13.7% |
| Aug 11, 2021 | $3.80 | $3.00 | -21.1% | $389M | +0.0% |
| May 28, 2021 | — | $51.59 | — | $451M | — |
FOA insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 26, 2026 | SAFRA EDMOND10 percent owner | Buy | 75,000 | $17.67 |
| Jun 26, 2026 | SAFRA EDMOND10 percent owner | Buy | 50,000 | $16.44 |
| Jun 16, 2026 | Prahm Jeremyofficer: Chief Investment Officer | Sell | 8,860 | $20.49 |
| May 19, 2026 | Corio Normadirector | Grant | 5,094 | — |
| May 19, 2026 | LIBMAN BRIAN Ldirector, 10 percent owner: | Grant | 5,094 | — |
| May 19, 2026 | Gardner Corydirector | Option | 4,570 | — |
| May 19, 2026 | Gardner Corydirector | Grant | 5,094 | — |
| May 19, 2026 | Pratcher Tyson Anwardirector | Grant | 5,094 | — |
| May 19, 2026 | Essex Andrewdirector | Option | 4,570 | — |
| May 19, 2026 | Corio Normadirector | Option | 4,570 | — |
| May 19, 2026 | West Lancedirector | Grant | 5,094 | — |
| May 19, 2026 | LIBMAN BRIAN Ldirector, 10 percent owner: | Option | 4,570 | — |
| May 19, 2026 | Prahm Jeremyofficer: Chief Investment Officer | Sell | 6,000 | $19.68 |
| May 19, 2026 | West Lancedirector | Option | 4,570 | — |
| May 19, 2026 | Essex Andrewdirector | Grant | 5,094 | — |
Source: FOA SEC Form 4 filings, latest Jun 26, 2026. For informational purposes only — not investment advice.
See the full FOA insider & 13F page →Finance Of America Companies Inc. company profile
Overview
Finance of America Companies Inc. (NYSE:FOA) is a consumer lending platform founded in 2013 and headquartered in Irving, Texas. The company went public in 2019 and has undergone significant strategic transformation over the past few years. Originally operating multiple lending segments including forward mortgages and commercial lending, FOA has pivoted to focus primarily on retirement-focused home equity solutions, particularly reverse mortgages and related products targeting homeowners aged 55 and older. The company completed a major acquisition of American Advisors Group (AAG) in 2022 and has consolidated its operations under a unified Finance of America brand.
Business
Finance of America operates as a specialized consumer lending platform focused primarily on reverse mortgages and home equity solutions for seniors. A reverse mortgage is a financial product that allows homeowners aged 62 or older to convert part of their home equity into cash without having to sell their home or make monthly mortgage payments. Instead of making payments to a lender, the homeowner receives payments from the lender, with the loan balance growing over time and typically repaid when the home is sold or the borrower passes away. The company operates through several key business segments: 1. Retirement Solutions (Primary Focus): This segment originates reverse mortgages, including Home Equity Conversion Mortgages (HECMs) backed by the Federal Housing Administration, and proprietary reverse mortgage products. The company also offers the HomeSafe Second product, which is a second lien reverse mortgage that allows homeowners to access equity while keeping their existing first mortgage. This segment represents the core of FOA's current business model and generates the majority of revenue. 2. Portfolio Management: This segment manages the company's retained loan portfolio and mortgage servicing rights (MSRs). It includes asset management services, risk management, and the valuation and trading of mortgage servicing rights. The portfolio generates income through servicing fees and changes in fair value of retained assets. 3. Lender Services: Provides ancillary services to the mortgage industry including loan securitization, loan sales, third-party loan review and due diligence services, appraisal services, and capital management services to other lenders and investors. The company has strategically exited other business lines including forward mortgage originations, commercial lending, and title insurance to focus on the senior home equity market, which represents approximately $14 trillion in untapped equity according to company estimates.
Revenue model
Finance of America generates revenue primarily through loan origination fees and gain-on-sale income from its reverse mortgage business. When the company originates a reverse mortgage, it typically sells the loan to government-sponsored entities or private investors, earning a premium over the loan amount based on market conditions and loan characteristics. The company also retains certain mortgage servicing rights and residual interests that generate ongoing income streams. The company's revenue model includes several components: origination fees paid by borrowers, gain-on-sale margins when loans are sold to investors, servicing fees from retained mortgage servicing rights, and fair value changes in retained portfolio assets. For 2024, the company reported $1.9 billion in total loan funding volume with revenue margins expanding from 9.2% to 10.7%. Key factors that influence the company's profitability include interest rate environments, as rising rates can compress loan-to-value ratios and reduce borrower demand while falling rates can increase refinancing activity and loan volumes. Home price appreciation directly impacts the available equity that seniors can access through reverse mortgages. Regulatory changes, particularly from the Federal Housing Administration and Ginnie Mae, can significantly impact product structures and profitability - for example, the pending HMBS 2.0 program could improve the company's liquidity and earnings potential. Competition from traditional banks, credit unions, and other specialty lenders affects pricing and market share. The company's ability to maintain operational efficiency through technology investments and process improvements directly impacts its cost per funded loan. Demographic trends, particularly the aging baby boomer population and their accumulated home equity, represent a significant tailwind for long-term demand growth.
Competitive moat
Finance of America operates in a specialized niche with modest competitive advantages but faces meaningful competitive pressures. The company's primary moat stems from its specialized expertise in reverse mortgage origination and servicing, which requires specific regulatory knowledge, operational capabilities, and relationships with government agencies like FHA and Ginnie Mae. The reverse mortgage market has relatively few large-scale participants compared to traditional mortgage lending, providing some protection from competition. The company has built brand recognition in the senior market through its unified Finance of America platform and marketing efforts targeting homeowners 55 and older. Its scale advantage allows for operational efficiencies and technology investments that smaller competitors may struggle to match. The acquisition and integration of AAG expanded the company's market presence and retail distribution capabilities. However, the competitive moat is relatively narrow. The reverse mortgage industry faces potential disruption from traditional banks and fintech companies that may enter the market as it grows. Large financial institutions have significantly more capital and could potentially offer more competitive pricing or superior technology platforms. The regulatory nature of the business creates barriers to entry but also subjects the company to regulatory changes that could erode profitability. The company's moat is further limited by the commoditized nature of mortgage lending and the fact that borrowers often shop multiple lenders for the best terms. While FOA has achieved a significant market share (37% of the HECM reverse market), this position could be challenged by well-capitalized competitors or regulatory changes that favor different business models. The pending HMBS 2.0 program, while potentially beneficial to FOA, could also level the playing field for other participants.
Risks & safety
Finance of America presents significant financial risks with limited margin of safety based on current metrics: • Liquidity concerns: Current ratio of 0.09 indicates severe short-term liquidity constraints, with current liabilities of $1.3 billion far exceeding current assets of $122 million • High leverage: Total liabilities of $28.8 billion against total assets of $29.2 billion, leaving minimal equity cushion • Negative operating cash flow: -$424 million in operating cash flow for 2024, indicating the business consumes rather than generates cash • Debt burden: The company completed a bond exchange in 2024 to address near-term debt maturities, but leverage remains concerning • Valuation metrics: Trading at 17.9x earnings and 1.1x book value, which appears reasonable but earnings quality is questionable given negative operating cash flows • Volatility risk: Business model subject to significant fair value adjustments and mark-to-market accounting that creates earnings volatility • Regulatory dependency: Heavy reliance on government programs and potential regulatory changes pose operational risks The company's survival depends on its ability to generate positive operating cash flows and access to credit facilities for loan funding. While management projects improved profitability, the current financial position provides little cushion for adverse market conditions.
Recent development
Over the past few years, Finance of America has undergone a dramatic strategic transformation from a diversified mortgage lender to a specialized reverse mortgage company. The company discontinued its forward mortgage origination business in 2022, which had been generating significant losses, and sold its title insurance business for $100 million. In 2022, FOA completed the acquisition of American Advisors Group (AAG), a major reverse mortgage lender, which immediately expanded its market presence and retail capabilities. The company has unified all operations under the Finance of America brand, consolidating what were previously separate brands including Finance of America Reverse and AAG. This brand consolidation included launching a new marketing campaign called "A Better Way with FOA" targeting homeowners 55 and older, which has shown early success with a 16% improvement in inquiry-to-lead conversion rates. Product innovation has centered around the HomeSafe Second product, a second lien reverse mortgage that allows homeowners to access equity while maintaining their existing first mortgage. The company expanded this product to additional states and reduced interest rates, resulting in 400% year-over-year growth in 2024. The HomeSafe Second addresses a key market need as many seniors have low-rate first mortgages they don't want to refinance. Operational improvements have been significant, with the company achieving a 33% increase in loans per employee, doubling the percentage of retail loans funded within 30 days, and reducing cost per opportunity by 12%. The company has invested in AI-driven tools and overhauled its data and reporting infrastructure to improve efficiency and decision-making. The company completed a reverse stock split and corporate bond exchange in 2024 to maintain its NYSE listing and address near-term debt maturities. Management has also rationalized corporate overhead and increased funding facilities to support growth objectives.
FOA company profile · for informational purposes only — not investment advice.
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