Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 6

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 6
---
 months ended March 31, 2025, the average CPRs on certain of our loan portfolios were: 13.1% for Non-QM loans, 11.0% for Single-family rental loans, and 6.4% for Legacy RPL/NPL loans.  In addition, for the three months ended March 31, 2025, the repayment rate (which includes both scheduled and unscheduled repayments of principal) was 63.0% for our Single-family transitional loans and 36.9% for our Multifamily transitional loans.

It is generally our business strategy to hold our residential mortgage assets as long-term investments.  On at least a quarterly basis, excluding investments for which the fair value option has been elected or for which specialized loan accounting is otherwise applied, we assess our ability and intent to continue to hold each asset and, as part of this process, we monitor our investments in securities that are designated as AFS for impairment.  A change in our ability and/or intent to continue to hold any of these securities that are in an unrealized loss position, or a deterioration in the underlying characteristics of these securities, could result in our recognizing future impairment charges or a loss upon the sale of any such security.  

Our residential mortgage investments have longer-term contractual maturities than our non-securitization related financing liabilities, and the interest rates we pay on our non-securitization related financings will typically change at a faster pace than the interest rates we earn on our investments.  In order to reduce this interest rate risk exposure, we may enter into derivative instruments, which currently include Swaps.  

56  

Recent Market Conditions and Our Strategy

During the first quarter of 2025, fixed-income markets again experienced significant volatility as investors reacted to economic uncertainty related to changing expectations of inflation, economic growth, labor market strength, changes to trade policy, and the implementation of earlier announced tariffs shortly after quarter-end and the ensuing uncertainty and tension. Despite this volatility, fixed-income markets delivered strong returns with the Bloomberg US Aggregate Index returning 2.78% for the first quarter, as Treasury rates moved lower across the yield curve while credit spreads generally widened modestly. During the quarter, we were able to add $875 million of our target assets at attractive yields. These additions included approximately $383 million of Non-QM loans, approximately $223 million of funded originations of Business purpose loans and draws on existing Transitional loans by Lima One, and approximately $268 million of Agency MBS