Company: MFAN
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001055160-25-000004
Chunk: 332

Company: MFA FINANCIAL, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 4
Chunk 332
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 financing agreements and lower interest expense for convertible senior notes as these notes matured in June 2024 and were repaid in full.

Provision for Credit Losses on Residential Whole Loans Held at Carrying Value

For 2024, we recorded a reversal of provision for credit losses on residential whole loans held at carrying value of $3.1 million compared to a reversal of provision of $8.9 million for 2023.  The reversal of provision recorded in 2024 primarily reflects the run-off of loans held at carrying value and minor changes to modeling assumptions. The prior period reversal primarily reflects updated modeling assumptions, as well as the run-off of loans held at carrying value, partially offset by the impact of loan charge-offs.

Provision for Credit Losses on Other Assets

For 2024, we recorded a provision for credit losses on Other Assets of $1.1 million, related to an uncollectible receivable from an unrelated third-party servicer. No such provision was recorded for 2023.

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Other Income/(Loss), net

For 2024, Other Income/(Loss), net was $85.4 million, compared to an Other Income/(Loss), net of $63.1 million for 2023.  The components of Other (Loss)/Income, net for 2024 and 2023 are summarized in the table below:

For the Year Ended December 31,(In Thousands)20242023Net gain/(loss) on residential whole loans measured at fair value through earnings$45,994 $89,850 Impairment and other net gain/(loss) on securities and other portfolio investments(10,869)6,225 Net gain/(loss) on real estate owned3,136 9,392 Net gain/(loss) on derivatives used for risk management purposes78,503 3,761 Net gain/(loss) on securitized debt measured at fair value through earnings(64,813)(99,589)Lima One mortgage banking income32,944 43,384 Net realized gain/(loss) on residential whole loans held at carrying value418 (1,240)Other, net115 11,331 Other Income/(Loss), net$85,428 $63,114 

Operating and Other Expense

Operating and other expenses are composed of compensation and benefits, other general and administrative, loan servicing and other related operating expenses and amortization of Lima One intangible assets.

Compensation and benefits expenses are composed