Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 142

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 142
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78.2 million, which were marked-to-market, but not based on a model at December 31, 2024.(2)Amounts are weighted based on the fair value of the underlying loan.(3)Amounts represent simple average values of the properties underlying residential whole loans held at fair value.Changes in market conditions, as well as changes in the assumptions or methodology used to determine fair value, could result in a significant increase or decrease in the fair value of residential whole loans.  Loans valued using a discounted cash flow model are most sensitive to changes in the discount rate assumption, while loans valued using the liquidation model technique are most sensitive to changes in the current value of the underlying properties and the liquidation timeline.  Increases in discount rates, default rates, loss severities, or liquidation timelines, either in isolation or collectively, would generally result in a lower fair value measurement, whereas increases in the current or expected value of the underlying properties, in isolation, would result in a higher fair value measurement.  In practice, changes in valuation assumptions may not occur in isolation and the changes in any particular assumption may result in changes in other assumptions, which could offset or amplify the impact on the overall valuation. 

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Table of ContentsMFA FINANCIAL, INC.NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSJUNE 30, 2025

The following table presents the carrying values and estimated fair values of the Company’s financial instruments as of June 30, 2025 and December 31, 2024:June 30, 2025June 30, 2025December 31, 2024(In Thousands)Level in Fair Value HierarchyCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueFinancial Assets:Residential whole loans3$8,768,067 $8,769,883 $8,759,151 $8,743,881 Residential whole loans251,458 51,458 52,073 52,073 Securities, at fair value21,829,809 1,829,809 1,537,513 1,537,513 Cash and cash equivalents1275,731 275,731 338,931 338,931 Restricted cash1269,224 269,224 262,381 262,381 Financial Liabilities (1):Financing agreements with non-mark-to-market collateral provisions3256,813 257