Finance of America posts a profit, beats funded volume estimates in Q1 2025

the company also viewed the first quarter of the year as a “strategic turning point” for the FOA brand, according to CEO Graham Fleming.

Brand moves

“With the recent launch of our new ‘A Better Way with FOA’ campaign, we are redefining how reverse mortgages are understood, moving the product from the margins into the mainstream as a flexible, forward-looking financial planning tool for homeowners 55 and up,” Fleming said.

“Finance of America is setting the standard for how our industry communicates the role of reverse mortgages.”

Graham Fleming

Early last month, the company announced that it had engaged with a new creative agency. It launched the “Better Way” campaign a few weeks later.

But beyond product positioning, FOA remains focused on its product offerings, which currently include the reverse mortgage industry’s only closed-end second lien product, HomeSafe Second.

“[W]e continue to see the advantages of our product suite flexibility by offering a broader range of solutions,” Fleming said. “[Through] the ability to introduce new products to address emerging needs, we are able to better serve our customers. This approach allows our customers to access the most suitable products to support their individual needs and circumstances.”

FOA President Kristen Sieffert also addressed the new campaign, saying it marks a change in direction.

“This campaign marks a shift away from traditional celebrity endorsement toward storytelling that reflects real life goals and aspirations of today’s homeowners,” she said.

Ashley Smith, senior vice president of brand and communications at FOA, also recently touched on this sentiment when discussing broader industry outreach efforts with HousingWire’s Reverse Mortgage Daily (RMD) at last week’s 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 is going to be for this industry, this category and Finance of America,” Smith said at the event.

“Part of our growth strategy is to make home equity for retirement mainstream, so this is something that we truly believe in and think is important for the industry right now.”

Financial performance

Matt Engel, FOA’s chief financial officer, described the financial performance for the quarter as strong “across several key metrics,” including funded volume growth and “meaningful improvement” in GAAP net results.

Spreads did widen slightly during the quarter, but overall valuations were positive stemming from “declining base rates and stable home-price appreciation assumptions,” Engel said.

The company endured an adjusted net loss of $7 million in Q1 2024. One year later, this measure improved by $20 million, which Engel attributed to “higher volumes, a fully integrated business and disciplined expense management.”

While the company’s retirement solutions segment saw flat revenue margins in Q1 2025, the company’s wholesale lending channel exceeded expectations and allowed FOA to beat its overall investor guidance. Efficiencies in originations were also highlighted.

“We originated higher volumes with a more streamlined team, leading to an increase in loans per employee of 33% across our origination platform compared to the first quarter of 2024,” Engel said.

“We expect to continue to see this trend upward due to the scalability of our model and the benefit of our ongoing 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.

Regarding these projections, the company is “reaffirming our full year guidance for both volume and earnings,” Engel said. This includes $2.4 billion to $2.7 billion in origination volume, along with $2.60 to $3 in adjusted earnings per share]. In the second quarter alone, it projects funded volume of $575 million to $600 million.

During the Q&A portion of the call, Fleming said that April 2025 “was actually our best submission and funded volume month in the last two years, so very strong volume in April.”

The stock market responded positively to FOA’s earnings report. As of 5 p.m. Eastern time on Wednesday, the company’s share price had jumped by more than 11% over the past 24 hours, and it has grown nearly 8% over the past 30 days.

“As the largest originator of reverse mortgages in the country, we believe we are well positioned to meet the moment,” Fleming said.