MFA Financial Inc. 9% Preferred Stock (MFAO)

Overview

MFA Financial, Inc. is a prominent real estate investment trust (REIT) based in the United States, with its operations concentrated on the residential mortgage sector. Since its incorporation in 1997, MFA Financial has dedicated its resources to a diversified portfolio of mortgage assets, thereby establishing a significant presence in the real estate investment landscape. Operating out of its headquarters in New York, New York, MFA Financial engages in strategic investments in a variety of mortgage-related assets, catering to the dynamics of the US housing market.

Products and Services

• Non-Agency Mortgage-Backed Securities (MBS)

  These are a type of mortgage-backed security that is secured by mortgages not guaranteed by a government agency. MFA Financial invests in these securities to capitalize on the higher yield potential offered by the non-agency segment of the mortgage market, understanding the associated risks and rewards.

• Agency MBS

  Contrary to non-agency MBS, agency MBS are backed by government-sponsored enterprises (GSEs), offering a safer investment avenue with a lower yield. MFA Financial incorporates agency MBS into its portfolio to balance risk and ensure a stable income stream from its investments in residential mortgage securities.

• Credit Risk Transfer Securities

  This innovative investment product allows investors to share in the credit risk associated with pools of mortgage loans. By investing in credit risk transfer securities, MFA Financial participates in the risk-sharing initiatives of GSEs, aligning with its strategy to diversify and manage investment risk.

• Residential Whole Loans

  MFA Financial also directly invests in residential whole loans, including purchased performing loans, purchased credit deteriorated (PCD) loans, and non-performing loans. This direct investment allows for greater control over the assets and potential for higher returns, especially in the purchased credit deteriorated and non-performing loans segments.

• Mortgage Servicing Rights (MSR) Related Assets

  MSRs represent a servicer's right to service a mortgage loan in exchange for a fee. By investing in MSR related assets, MFA Financial taps into the recurring revenue stream generated from the servicing of mortgage loans, adding another layer to its diversified investment strategy.