Finance Of America Companies Inc. · NYSE:FOA
Finance Of America Companies — Q4 2023 Earnings Presentation
24 slides from Finance Of America Companies's earnings presentation, Mar 6, 2024
Slide 1: Investor Presentation
2024 Investor Presentation LAST UPDATED 03.06.2024
Slide 2: Disclaimer
Disclaimer 2 Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts or statements of current conditions, bu
Slide 3: The Finance of America Investment Thesis
3 SECTION 1 The Finance of America Investment Thesis Our Great Ambition page 4 Investment Thesis page 5 Opportunity Details page 6-7 A Path Forward page 8-9
Slide 4: Unlocking America's Greatest Retirement Asset
4 OUR GREAT AMBITION Unlocking America’s Greatest Retirement Asset Melanie from $13 Trillion SENIOR HELD HOME EQUITY 1 Lafeyette, CO A Finance of America Customer Finance of America is making home equity part of a mainstream, modern retirement so that more Americans can benefit from their untapped w
Slide 5: Home Equity for Retirement is Ripe for Disruption
5 INVESTMENT THESIS Home Equity for Retirement is Ripe for Disruption The category only sees a fraction of the $13T total home equity seniors hold. Finance of America is ideally situated to catalyze category growth and capture first-mover advantage. Our Distinctive Advantages: 01 Clear Market Leader
Slide 6: Home Equity is the Answer to a Secure Future for Seniors
6 OPPORTUNITY DETAILS Home Equity is the Answer to a Secure Future for Seniors $13.08 TRILLION R E CO R D AMOU NT OF SE NIO R H OU SING WE ALT H 1 79% OF AME R ICANS AG E S 65 O R O LD E R OWN T H E IR H OME 2 40% OF T OT AL H O ME E Q U IT Y IN T H E U . S. H E LD B Y SE NIO R S IN 20 23. 3 54% OF
Slide 7: Seniors Will Need Access to Their Housing Wealth
7 OPPORTUNITY DETAILS SeniorsWill Need Access to Their Housing Wealth 10,000 PE O PLE PE R D AY WH O R E ACH R E T IR E ME NT AG E IN U . S. 1 ($3.68T) E ST IMAT E D R E T IR E ME NT SAV ING S SH O R T FALL FO R SE NIO R S IN U . S. 2 1 in 3 WO R R Y T H AT T H E Y WILL NO T H AV E E NO U G H MO NE
Slide 8: A Path Forward
8 A PATH FORWARD “As the world has changed, many maturing adults have been given the gift of an extra 20-30 years compared to previous generations. But this gift isn’t free. Hard work is needed to increase the odds of not only living longer, but also living well. Nobody said it will be easy, but put
Slide 9: New Thinking Will Connect Consumer Needs & Solutions
9 A PATH FORWARD New Thinking Will Connect Consumer Needs & Solutions MAKE HOME EQUITY FOR RETIREMENT MAINSTREAM . Elevate our brand and financial product offerings to break the adoption barrier and offer a customer-centric experience that builds confidence and exceeds expectations. We believe these
Slide 10: The Finance of America Distinctive Advantages
10 SECTION 2 The Finance of America Distinctive Advantages Clear Market Leadership page 11 Lifelong Commitment to Borrower page 19 Dominant Distribution Footprint page 12 Deep Industry Experience page 20 Innovation Engine page 13-14 Capital Markets Strength page 15 Digital Capabilities page 16-18
Slide 11: Clear Market Leadership
11 01 Clear Market Leadership The largest and longest operating reverse mortgage provider in the industry.1 #1 $17.8bn R E V E R SE MOR T G AG E LE ND E R & SE R VICE R 1 LE AD E R IN R E VE R SE MO R T G AG E IND U ST R Y R E VE R SE MO R T G AG E FU ND E D VO LU ME FR OM 20 1 8 – 20 23 950 $10.2bn
Slide 12: Dominant Distribution Footprint
12 02 Dominant Distribution Footprint A strong foundation for broad reach, distribution & influence. Retail Platform Wholesale Platform Strategic • Broad Marketing Reach • Leadership Position Partnerships with Advertising Reaching • Immense Scale 20 million Consumers Annually • Growing Broker Origin
Slide 13: Innovation Engine: Developing Demand Driven Solutions
13 03 Innovation Engine Finance of America’s Innovative Home Equity Developing Demand Product Strategy Solves for Customer Need Gap Driven Solutions
Slide 14: Leading Product Franchise
14 03 Innovation Engine Leading Product Franchise Finance of America is the industry leader in product innovation. We are the first in developing cutting-edge solutions to fill market gaps. ALL PRODUCTS DELIVER CASH FLOW BENEFITS, DESIGNED FOR LIFE AFTER 55* Agency Product, Flagship Proprietary Jumb
Slide 15: The Longest Running Active Securitization Shelf
15 04 Capital Markets Strength The Longest Running Active Securitization Shelf OVER $10.2 BILLION NOTIONAL ISSUED Over the last 6 years, macro-economic events created challenges for • Longest running active the reverse mortgage industry, yet Finance of America maintained securitization shelf for con
Slide 16: Redefining the Digital Experience
16 05 Digital Capabilities FINANCE OF AMERICA IS DEVELOPING MODERN Redefining the TOOLS ACROSS THE CUSTOMER JOURNEY. 62% Digital Experience OF THOSE 50+ USED ONLINE FINANCE AND BANKING APPS IN Our commitment to innovation is THE LAST 3 MONTHS not just about staying ahead of the - AARP 2023 STUDY1 cu
Slide 17: Prioritizing Best-in-Class Digital and Loan Origination Tools
17 05 Digital Capabilities A NEW DIGITALLY SIMPLIFIED AND TO EXPLORE HOME ENABLED JOURNEY DEEPLY INTEGRATED EQUITY IN RETIREMENT Prioritizing Best-in- Class Digital and Loan Origination Tools The digital interfaces shown here are in the process of being developed. Our Company is prioritizing the imp
Slide 18: AI Powered Lending
18 05 Digital Capabilities AI Powered Lending At Finance of America, we’re actively integrating cutting-edge Mark from West Hills, CA A Finance of America Customer AI technologies across our operations for AI Leadership Is AI-Driven AI Empowerment efficiency, accuracy, and Built On Data Marketing By
Slide 19: Lifelong Commitment to Borrower
19 06 Lifelong Commitment to Borrower Excellence Extends Beyond the Transaction into Post-funding Relationship CONTINUOUS CONTACT, EDUCATION AND RESOURCES REINFORCE POSITIVE OUTCOMES. Borrower Engagement Team Personal contact with maintains contact for life of loan borrower and family members provid
Slide 20: Deep Industry Experience
20 07 Deep Industry Experience Finance of America Companies is led by a close-knit group of long-time colleagues with deep industry expertise. Graham Fleming Kristen Sieffert Matt Engel Jeremy Prahm Lauren Richmond CEO President Chief Financial Officer Chief Investment Officer Chief Legal Officer 25
Slide 21: Let's Unlock America's Greatest Retirement Asset
21 Let’s Unlock America’s Greatest Retirement Asset For more information visit us online: IR.FinanceOfAmerica.com Or email us at: IR@FinanceOfAmerica.com
Slide 22: Appendix: Select Reverse Mortgage Research
APPENDIX Select Reverse Mortgage Research aA FINANCE of AMERICA COMPANIES: Finance of America Expands Reach of Second Lien Reverse Mortgage to Allow More Homeowners 55 and Older to Access Home Equity October 23, 2023 FINANCE of AMERICA - REVERS E- Nearly 80% of American Homeowners are Anxious About
Slide 23: Appendix: Select Reverse Mortgage Research
APPENDIX Select Reverse Mortgage Research ~AARP Every day in the U.S., 10,000 people turn 65 December 2021 JOINT CENTER FOR ICHS Me MOUsINe stunts U.S. Households Are Aging 2023 FA FINANCE of AMERICA” Every day in the U.S., 10,000 people turn 65, and the number of older adults will more than double
Slide 24: Appendix: Select Reverse Mortgage Research
APPENDIX Select Reverse Mortgage Research ‘Over January and February 2022, the University of Michigan National Poll on Healthy Aging asked a M UNIVERSITY OF MICHIGAN national sample of adults age 50-80 about their perspectives on aging in place, their homes, and. available social supports. + The maj
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