Finance of America Companies Inc.

of Finance. Please go ahead.

Thank you, and good afternoon, everyone, and welcome to Finance of America's third quarter earnings call. With me today are Graham Fleming, Chief Executive Officer and Interim Chief Financial Officer, and Crispin Siepert, President of Finance of America. As a 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 discussed on today's call in our earnings press release and presentation on the investor relations page of our website. Also, I would like to remind everyone that comments on this conference call regarding the company's expected operating and financial performance for future periods may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 today's earnings 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 annual report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 16, 2023. As such, risk factors may be amended and updated in our subsequent filings with the SEC. We are not undertaking any commitments to update these statements if conditions change. Please note, today we will be discussing interim period financials that are unaudited. Now, I would like to turn the call over to Finance of America's Chief Executive Officer and Interim Chief Financial Officer, Graham Fleming. Graham?

Yeah, thank you, Michael. Good afternoon, everyone, and thank you for joining us. Before we begin, I would like to acknowledge Johan Gehrig's departure from Finance of America, effective October 13th. We appreciate Johan's work during his tenure and we wish him well in his future endeavors. Looking ahead, we're excited for Matt Engel to become Finance of America's Chief Financial Officer, effective November 15th. Matt is a seasoned financial leader with deep reverse mortgage industry experience and will play an important role supporting our goal of offering modern retirement solutions that utilize home equity for older homeowners. We look forward to introducing Matt to everyone after he officially starts as CFO later this month. To begin, I would like to briefly review our top line financial results for the quarter and the macro trends affecting them. I will then turn things over to Kristen to share some important operational updates, followed by a review of the financials from Michael. Finance of America continues to lead the way in helping homeowners 55 and older benefit from their growing home equity and remains the preeminent provider of modern retirement solutions focused on the home. Along this path, there were several key strategic actions taken during the quarter as we continued to focus our vision towards the retirement space. First, we completed the sale of our title insurance business during the first few days of the quarter. In September, we completed two additional transactions to further refine our focus. These were the sale of the operational assets of our home improvement platform and the transition of our offshore fulfillment services team. Understanding our commitment to building a modern retirement solutions platform, we saw this as a unique opportunity to advance our goals. On a continuing operations basis, we recorded gap net loss of $172 million or $0.74 per basic share in the third quarter, driven primarily by the negative impact of rates and spreads. On an adjusted basis, we recognized a net loss of $25 million or $0.11 per fully diluted share. as we absorbed additional losses from the home improvement platform and downward pressure on margins. Balance sheet write-downs make up a significant portion of the gap net loss due to fair value adjustments and interest rate increases impacting the portfolio. Amid a challenging macro environment, we are focused on executing against what's in our control. With this focus, we have identified core operating initiatives which will enhance revenue and improve expenses within our operating segments and we'll also streamline our corporate overhead. As laid out on slide three of the supplemental presentation, Finance of America is focused on a number of items. To enhance revenue, we are looking to expand our product suite, modernize the customer experience, and optimize our marketing opportunity to lead conversion. To improve expenses, we are planning to consolidate our technology, lower our cost to produce, and efficiently scale our marketing. Finally, to rationalize corporate, we will continue to streamline our enterprise functions and simplify our structure to more appropriately align with our go-forward operational strategy. I will now turn things over to Kristen for an update on our operations, the integration with AAG, and the work we've been doing to enhance our products and sales channels.