Company: MFAN
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001055160-25-000004
Chunk: 243

Company: MFA FINANCIAL, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1A
Chunk 243
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, misleading or based on incomplete information. 

•Valuations of some of our assets are subject to inherent uncertainty, may be based on estimates, may fluctuate over short periods of time and may differ from the values that would have been used if a ready market for these assets existed. 

•Our investments in residential whole loans are difficult to value and are dependent upon the borrower’s ability to service or refinance their debt.

•We may be adversely affected by risks affecting borrowers or the asset or property types in which our investments may be concentrated, as well as from unfavorable changes in the related geographic regions.

•Our investments in residential whole loans subject us to servicing-related risks, including foreclosure and liquidation. 

•The expanding body of federal, state and local regulations and investigations of originators and servicers may increase costs of compliance and the risks of noncompliance.

•Our ability to sell REO on terms acceptable to us or at all may be limited.

•Our investments in MSR-related assets expose us to additional risks.

•Our ownership of Lima One and our investments in mortgage loan originators expose us to additional risks.

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Table of Contents

Prepayment and Reinvestment Risk

•Prepayment rates on the mortgage loans underlying certain of our residential mortgage assets may materially adversely affect our profitability or could require us to sell assets in unfavorable market conditions.

Risks Related to Our Use of Leverage

•Our business strategy involves the use of leverage, and we may not achieve what we believe to be optimal levels of leverage or we may become overleveraged.

•An increase in our borrowing costs relative to the interest we receive on our investments may materially adversely affect our profitability.

•The impact of inflation may adversely affect our financial performance.

•Our current and future lenders may require that we enter into restrictive covenants relating to our operations.

•Reliance on certain types of financing structures expose us to risks.

Cybersecurity Risks

•Maintaining cybersecurity and data security is important to our business and a breach of our cybersecurity or data security could result in serious harm to our reputation.

•We are dependent on information systems and their failure could significantly disrupt our business.

Risks Associated with Adverse Developments in the Mortgage Finance and Credit Markets and Financial Markets Generally

•Market conditions for mortgages and mortgage-related assets as well as the broader financial markets may materially adversely affect the value of the assets in which we invest.

•A lack of liquidity in our investments may materially adversely affect our business.

•Actions and regulations by the U.S. Government