Finance of America posts negative revenue and wider loss in third quarter 2026

what happened

According to TradingView, citing the company's 10-Q filing, Finance of America's revenue turned negative in the third quarter of 2026 at minus $57.95M, compared with $80.85M a year earlier. The net loss attributable to controlling interest widened to $47.15M from $9.52M, and diluted loss per share reached $6.05 versus $1.27.

The main driver was higher interest rates, which caused larger fair-value losses on portfolio assets and liabilities: $141.9M against $21.9M a year earlier. Reverse mortgage origination volume rose 24.1% to $748.4M, but the average production margin fell to 7.9% from 9.9%, so the higher volume did not offset the squeeze. Loan securitizations issued $1.7B of notes, down from $3.2B.

In 2026 the company began originating traditional home equity loans, and in April it rolled out a second-lien reverse mortgage line of credit.

why it matters

For the broader market this is the report of a small mortgage lender, but it shows how rising rates hit the sector: revaluation of assets erodes earnings, and lower securitization volume limits funding. Investors in the mortgage space will be watching rate moves and origination margins closely.

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