Finance of America Companies Inc.

Good morning, ladies and gentlemen, and welcome to the Finance of America's second quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. As a reminder, this call will be recorded. I would now like to turn the conference over to Michael Fant, Senior Vice President of Finance at Finance of America. Please go ahead, Michael.

Thank you, and good morning, everyone, and welcome to Finance of America's second quarter earnings call. With me today are Patty Cook, Chief Executive Officer, Johan Gehrig, Chief Financial Officer, and Graham Fleming, President. As a quick reminder, this call is being recorded, and you can find the earnings release and presentation on our Investor Relations website at www.financeofamerica.com. In addition, we will refer to certain non-GAAP financial measures on this call. You can find reconciliations of non-GAAP to GAAP financial measures to the extent available without unreasonable effort discussed on today's call, in our earnings press release, and on the investor relations page of our website. Also, I would like to remind everyone that comments on this conference call may be forward-looking statements regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations and are subject to the safe harbor statement for forward-looking statements that you will find in yesterday's news release. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of risks or other factors, including those that are described in the risk factors section of Finance of America's Form S-1 originally filed with the SEC on May 25th, 2021. We are not undertaking any commitment to update these statements if conditions change. Please note, these are interim period financials and are unaudited. On today's call, Patty will begin with a brief discussion of our business model. Johan will cover the financial results, and Graham will spotlight our reverse origination segment. Now, I'd like to turn the call over to Finance of America's Chief Executive Officer, Patty Cook. Patty?

Thanks, Michael, and good morning, everyone. Before we get started, I want to mention a few significant changes for Finance of America that happened this quarter. Effective April 1st, we completed our business combination and began trading on the New York Stock Exchange on April 5th. Additionally, we began the integration of our home improvement business, along with the previously announced acquisition of Partside Lending in May. We are really excited about the value these investments will bring to our shareholders over time. Now let's turn to slide three of the presentation. As our results this quarter demonstrated, there is significant value in our diversification. Our model's key competitive advantages include an extensive product set, multiple distribution channels, and bespoke capital markets capabilities. The Finance of America business model is unique in that we have built a platform that includes mortgage, reverse, commercial, and most recently, home improvement loans, together with multiple distribution channels to serve our customers as they prefer. In addition, our fee-for-service businesses and portfolio management segment produce recurring revenue streams that help limit the effects of a cyclical mortgage market. Each of these businesses is supported by unique tailwinds that provide resiliency to the platform through varying interest rates and economic environments. In fact, every segment generated meaningful growth in revenue year to date compared to last year. As an example, revenue growth in our reverse business is driven by an increasing population of baby boomers who would like to age in place. but have inadequate savings for retirement, yet they have significant untapped wealth in their homes. A reverse mortgage is an efficient way to access that equity. Another example of the diversified nature of our model relates to our extensive capital markets capability, which allows us to seamlessly connect borrowers with investors in order to manage liquidity, transfer risk, and optimize funding costs. This was evidenced in our recent securitization of non-owner-occupied loans completed in June, the first of its kind for our company, which freed us from the constraints of the recent GSE cap. Our powerful end-to-end platform enables us to identify gaps in the market and introduce consumer-centric products that add to our competitive advantage. This quarter we funded the first equity avail loan, an innovative product which combines many of the benefits of traditional and reverse mortgages. It is designed to provide greater financial flexibility for homeowners at or near retirement. Identifying and meeting customer needs is what we do best, and we look forward to continuing to innovate across our platform. Let's turn to highlights for the quarter on slide four. Our mortgage segment was not immune to the industry dynamics, and we saw declines in revenues aligned with our peers. In contrast, we saw substantial growth in our reverse, commercial, and lender services segments. Both reverse and lender services generated record revenues in the quarter, and in combination, revenue growth from these three businesses offset a portion of our mortgage revenue declines. In mortgage, results in the TPO channel were particularly stressed due to steep margin declines and elevated costs as we integrated the part-side lending acquisition. On a positive note, we have made progress with the integration of our home improvement business and expected to contribute to the bottom line starting in Q4. We also saw a shift from refinance to purchase volume, and our distributed retail channel is well-suited to serve this market dynamic. In fact, purchase funded volumes grew from $2.7 billion to $3.5 billion quarter over quarter. Margins stabilized in the second quarter and have shown modest improvement in July and August. That said, we expect to see continued pressure in the mortgage segment for the remainder of the year. With that, I would like to turn the call over to Johan to discuss our second quarter results in more detail. Johan?