Company: MFAN
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001055160-25-000004
Chunk: 494

Company: MFA FINANCIAL, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7A
Chunk 494
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  The coupon payments on CRT securities are paid by the issuer and the principal payments received are dependent on the performance of loans in either a reference pool or an actual pool of loans.  At December 31, 2024 and December 31, 2023, the Company had $67.6 million and $83.2 million, respectively, of CRT securities.  As an investor in a CRT security, the Company may incur a principal loss if the performance of the actual or reference pool loans results in either an actual or calculated loss that exceeds the credit enhancement of the security owned by the Company.  The Company assesses the credit risk associated with its investments in CRT securities by assessing the current and expected future performance of the associated loan pool.  The Company pledges a portion of its CRT securities as collateral against its borrowings under repurchase agreements (see Note 6).Non-Agency MBSNon-Agency MBS are primarily secured by pools of residential mortgages, which are not guaranteed by an agency of the U.S. Government or any federally chartered corporation.  At December 31, 2024, and December 31, 2023, the Company had $22.6 million and $23.8 million, respectively, of Non-Agency MBS.  These securities were acquired on the de-consolidation of certain trusts that held previously securitized Agency eligible investor loans.The following tables present certain information about the Company’s Agency MBS and other Securities, at December 31, 2024 and 2023: December 31, 2024(In Thousands)Principal/ CurrentFacePurchasePremiumsAccretablePurchaseDiscountsDiscountDesignated as Credit Reserve (1)Gross AmortizedCostGrossUnrealizedGainsGrossUnrealizedLossesNetUnrealizedGain/(Loss)Fair ValueAgency MBS$1,403,891 $5,534 $(3,525)$— $1,405,900 $2,318 $(15,583)$(13,265)$1,392,635 Other Securities (2)(3)(4)146,808 14,747 (5,662)(23,691)132,202 13,166 (490)12,676 144,878 Total residential mortgage securities (2)(3)(4)$1,550,699 $20,281 $(9,187)$(23,691)$1,538