Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 8

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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 2025:

(In Millions)December 31, 2024Runoff (1)Acquisitions & Originations (2)Other (3)March 31, 2025ChangeResidential whole loans and REO$8,942 $(613)$607 $(21)$8,915 $(27)Securities, at fair value1,538 (32)268 16 1,790 252 Totals$10,480 $(645)$875 $(5)$10,705 $225 

(1)    Primarily includes principal repayments and sales of REO.

(2)    Includes draws on previously originated Transitional loans.  

(3)    Primarily includes sales, changes in fair value and changes in the allowance for credit losses.  

At March 31, 2025, our total recorded investment in residential whole loans and REO was $8.9 billion, or 83.3% of our residential mortgage asset portfolio. Of this amount, $4.5 billion are Non-QM loans, $1.3 billion are Single-family rental loans,$1.0 billion are Single-family transitional loans, $0.8 billion are Multifamily transitional loans and $1.1 billion are Legacy RPL/NPL loans. Loan acquisition activity of $606.9 million for the three months ended March 31, 2025 included $161.9 million of Single-family transitional loans (including draws), $383.4 million of Non-QM loans, $55.5 million of Single-family rental loans and $6.1 million of Multifamily transitional loans (including draws). For the three months ended March 31, 2025, we recognized approximately $151.3 million of residential whole loan interest income on our consolidated statements of operations, representing an effective yield of 6.77%, with Single-family transitional loans generating an effective yield of 9.77%, Multifamily transitional loans generating an effective yield of 8.67%, Single-family rental loans generating an effective yield of 6.42%, Non-QM loans generating an effective yield of 5.78% and Legacy RPL/NPL loans generating an effective yield of 7.01%.  Since the second quarter 

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of 2021 we have elected the fair value option for all loan acquisitions, and 86% of our total loan portfolio is measured at fair value through earnings.  Included in earnings in Other Income