Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 207

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 207
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 have increased since origination, increasing the risk of credit losses on this portfolio. 

Our investment process for Legacy RPL/NPL loans is focused on quantifying and pricing credit risk.  Legacy RPL/NPL loans are acquired at purchase prices that are generally discounted to the contractual loan balances based on a number of factors, including the impaired credit history of the borrower and the value of the collateral securing the loan.  In addition, as we generally own the mortgage-servicing rights associated with these loans, our process is also focused on selecting a sub-servicer with the appropriate expertise to mitigate losses and maximize our overall return.  This involves, among other things, performing due diligence on the sub-servicer prior to their engagement as well as ongoing oversight and surveillance.  To the extent that delinquencies and defaults on these loans are higher than our expectation at the time the loans were purchased, the discounted purchase price at which the asset is acquired is intended to provide a level of protection against financial loss. 

The following table presents certain information about our Residential whole loans as of June 30, 2025:

Non-QM loansSingle-family rental loansSingle-family transitional loansMultifamily transitional loansLegacy RPL/NPL loans Loans with an LTV:Loans with an LTV:Loans with an LTV:Loans with an LTV:Loans with an LTV:(Dollars in Thousands)80% or BelowAbove 80%80% or BelowAbove 80%80% or BelowAbove 80%80% or BelowAbove 80%80% or BelowAbove 80%Amortized cost$4,776,175 $226,258 $1,307,355 $22,559 $815,028 $75,019 $718,976 $51,369 $837,113 $115,224 Unpaid principal balance (UPB)$4,657,755 $222,198 $1,301,580 $22,542 $812,329 $73,654 $714,771 $50,039 $982,518 $180,708 Weighted average coupon (1)6.7 %7.2 %6.4 %6.2 %10.4 %10.2 %9.7 %9.6 %5.1 %5.0 %Weighted average term