Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 187

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 187
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The following table presents the components of the net interest spread earned on our Residential mortgage assets for the periods presented:

 Six Months EndedJune 30, 2025June 30, 2024Non-QM LoansNet Yield (1)5.79 %5.44 %Cost of Funding (2)(5.11)%(5.16)%Impact of net Swap carry (3)0.73 %1.66 %Net Interest Spread1.41 %1.94 %Business Purpose LoansNet Yield (1)8.04 %7.83 %Cost of Funding (2)(6.11)%(6.70)%Impact of net Swap carry (3)0.44 %0.96 %Net Interest Spread2.37 %2.09 %Legacy RPL/NPL LoansNet Yield (1)7.85 %8.16 %Cost of Funding (2)(4.27)%(4.64)%Impact of net Swap carry (3)0.36 %1.07 %Net Interest Spread3.94 %4.59 %Total Residential Whole LoansNet Yield (1)6.81 %6.78 %Cost of Funding (2)(5.36)%(5.79)%Impact of net Swap carry (3)0.59 %1.30 %Net Interest Spread2.04 %2.29 %Securities, at fair valueNet Yield (1)6.34 %7.13 %Cost of Funding (2)(4.56)%(5.77)%Impact of net Swap carry (3)1.06 %1.85 %Net Interest Spread2.84 %3.21 %

(1)Reflects annualized interest income on Residential whole loans divided by average amortized cost of Residential whole loans.  Excludes servicing costs. 

(2)Reflects annualized interest expense divided by average balance of agreements with mark-to-market collateral provisions (repurchase agreements), agreements with non-mark-to-market collateral provisions, and securitized debt.  

(3)Reflects the difference between Swap interest income received and Swap interest expense paid on our Swaps. While we have not elected hedge accounting treatment for Swaps and, accordingly, net Swap carry is not presented in interest expense in our consolidated statement of operations, we believe it is appropriate