Finance of America Posts $110M Quarterly Loss
The mortgage lender's third-quarter loss was driven mainly by noncash fair-value adjustments, while adjusted earnings fell sharply from a year earlier.
Updated on Nov. 4, 2026 in Corporate Finance
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Finance of America Companies Inc. reported a $110 million net loss from continuing operations for the quarter ended Sept. 30, 2026, equal to $5.24 per share. The loss primarily reflected $125 million in noncash fair-value adjustments, while the company reported adjusted earnings of 28 cents per share.
Why it matters
The results show how higher benchmark interest rates pressured the company's origination gains, even as funded volume grew. Management characterized the rate impact as temporary, which will shape how investors judge the company's recovery.
Adjusted earnings fell to 28 cents per share from $1.33 a year earlier, while funded volume rose 24% to $748 million. Cash and cash equivalents reached $118 million on Sept. 30, though the report does not say whether the noncash fair-value adjustments will reverse.
The players
Finance of America Companies Inc.
A U.S. mortgage and reverse-mortgage lender whose quarterly results are tracked by investors in the non-bank mortgage sector.
Graham A. Fleming
The chief executive of Finance of America, who said the company believes the impact of higher interest rates on earnings is temporary.
The details
Finance of America linked lower adjusted earnings primarily to reduced net origination gains amid higher rates. The company said it made product and pricing changes to address those effects.
Timeline
Sept. 30, 2026: Third-quarter results and cash balance reported
November 2026: Planned $60 million paydown of senior secured notes
Market Dynamics
The quarter's results reflect the continued squeeze on mortgage origination margins that followed the rapid rise in U.S. benchmark interest rates in 2022 and 2023. Finance of America's adjusted earnings decline shows that pressure has carried into the current period for non-bank lenders.
Shareholders are weighing a GAAP loss against adjusted earnings that remained positive, which affects how the company's stock may be valued. Borrowers and investors in mortgage-linked holdings may also see the effects of the company's pricing changes.
The takeaway
Investors comparing quarterly results should look past headline net losses to see whether non-cash adjustments drive the figure, as they did here. Management's claim that rate pressure is temporary is one to track in coming quarters.
What happens next
Finance of America plans to complete a $60 million paydown of senior secured notes in November 2026.
Further reading
For more on how company earnings are reported and compared, see Corporate Finance.
Source note: This article includes information reported by TokenPost.
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