Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 105

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 105
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Table of ContentsMFA FINANCIAL, INC.NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSJUNE 30, 2025

The following table presents the activity in the Company’s REO for the three and six months ended June 30, 2025 and 2024: Three Months EndedJune 30,Six Months EndedJune 30,(Dollars In Thousands)2025202420252024Balance at beginning of period$130,634 $106,185 $130,854 $110,174 Adjustments to record at lower of cost or fair value(3,565)(2,690)(6,777)(3,957)Transfer from residential whole loans (1)30,286 25,609 55,734 44,951 Purchases and capital improvements, net182 52 317 203 Disposals and other (2)(21,713)(21,143)(44,304)(43,358)Balance at end of period$135,824 $108,013 $135,824 $108,013 Number of properties377 352 377 352 (1)During the three and six months ended June 30, 2025, the Company recognized $(4.4) million and $(4.4) million of gains/(losses), respectively, on Residential whole loans in Other Income/(Loss), net associated with the transfer of loans to REO. During the three and six months ended June 30, 2024, the Company recognized $(1.2) million and $(2.4) million of gains/(losses), respectively, on Residential whole loans in Other Income/(Loss), net associated with the transfer of loans to REO.(2)During the three and six months ended June 30, 2025, the Company sold 107 and 201 REO properties for consideration of $21.8 million and $46.0 million, realizing net gains of approximately $0.6 million and $2.3 million, respectively. During the three and six months ended June 30, 2024, the Company sold 63 and 136 REO properties for consideration of $25.6 million and $49.8 million, realizing net gains of approximately $4.5 million and $6.5 million, respectively. These amounts are included in Other Income/(Loss), net on the Company’s consolidated statements of operations. Commercial REO