Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 135

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 135
---
 have recourse only to the assets in the SPE and, depending on the overall structure of the transaction, may benefit from various forms of credit enhancement such as over-collateralization in the form of excess assets in the SPE, priority with respect to receipt of cash flows relative to holders of other debt or equity instruments issued by the SPE, or a line of credit or other form of liquidity agreement that is designed with the objective of ensuring that investors receive principal and/or interest cash flow on the investment in accordance with the terms of their investment agreement. The Company has entered into several financing transactions that resulted in the Company consolidating as VIEs the SPEs that were created to facilitate these transactions.  See Note 2(q) for a discussion of the accounting policies applied to the consolidation of VIEs and transfers of financial assets in connection with financing transactions. The Company has engaged in loan securitizations primarily for the purpose of obtaining improved overall financing terms as well as non-recourse financing on a portion of its residential whole loan portfolio.  Notwithstanding the Company’s participation in these transactions, the risks facing the Company are largely unchanged as the Company remains economically exposed to the first loss position on the underlying assets transferred to the VIEs. Loan Securitization TransactionsThe following table summarizes the key details of the Company’s consolidated loan securitization transactions currently outstanding as of March 31, 2025 and December 31, 2024: (Dollars in Thousands)March 31, 2025December 31, 2024Aggregate unpaid principal balance of residential whole loans sold$10,229,681 $9,924,643 Face amount of Senior Bonds issued by the VIE and purchased by third-party investors$8,938,397 $8,655,017 Outstanding amount of Senior Bonds, at carrying value$556,688 (1)$583,597 (1)Outstanding amount of Senior Bonds, at fair value$5,317,030 $5,211,380 Outstanding amount of Senior Bonds, total$5,873,718 $5,794,977 Weighted average fixed rate for Senior Bonds issued5.07 %(2)5.02 %(2)Weighted average contractual maturity of Senior Bonds36 years(2)36 years(2)Face amount of Senior Support Certificates received by the Company (3)$1,243,687 $1,222,029 Cash received