Company: MFAN
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001055160-25-000004
Chunk: 120

Company: MFA FINANCIAL, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 5
Chunk 120
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 Senior Notes, and certain repurchase agreements is net of associated debt issuance costs.  Other Assets Measured at Fair Value on a Nonrecurring BasisThe Company holds REO at the lower of the current carrying amount or fair value less estimated selling costs.  During the years ended December 31, 2024 and 2023, the Company recorded REO with an aggregate estimated fair value, less estimated cost to sell, of $103.7 million and $84.7 million, respectively, at the time of foreclosure.  In addition, at December 31, 2023, the Company held one property which is considered Commercial REO (see Note 5) which is accounted for similarly and had an estimated fair value, less estimated cost to sell, of $34.2 million upon acquisition, of which the Company’s 75% interest was $25.7 million. In the first quarter of 2024, this Commercial REO property’s estimated fair value, less estimated cost to sell, was updated to $33.3 million, of which the Company’s 75% interest was $25.0 million. In the second quarter of 2024, this Commercial REO property’s estimated fair value, less estimated cost to sell, was updated to $33.1 million, of which the Company’s 75% interest was $24.8 million. Further, during the third quarter of 2024, the Company recognized at fair value two properties considered Commercial REO (see Note 5) at $28.4 million and $40.0 million, of which the Company’s 75% and 49% interests were $10.3 million and $8.2 million (net of related third-party financing), respectively. The Company classifies fair value measurements of REO as Level 3 in the fair value hierarchy.The Company determined to sell certain residential whole loans in the fourth quarter of 2023. At the time this determination was made, certain of the loans were marked to fair value as their fair value at that time was lower than their carrying value. The aggregate value of these loans at the time of determination was $13.6 million and a loss of $1.2 million was recorded. These loans were classified as Level 3 in the fair value hierarchy.

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Table of ContentsMFA FINANCIAL, INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSDecember 31, 2024