REIT tripled the volume of attracted loans mainly due to the increase in non-QM



In the second quarter of 2021, MFA Financial, Inc.’s residential mortgage portfolio. jumped $ 299 million as loan buying activity exceeded portfolio churn. The volume of the company’s attracted loans increased significantly, more than three times more than in the first quarter of 2021. This increase is mainly attributable to non-QM loans of USD 373.6 million.

According to the company, two securitizations were completed during the quarter. These securitizations included the securitization of US $ 394 million of non-QM loans, with US $ 371 million sold at a mixed cost of 1.37%, resulting in a decrease in the funding rate on these loans by about 200 basis points, according to financial results of the company. In addition, the Ministry of Foreign Affairs completed the securitization of previously securitized and other reoccurring loans in the amount of $ 473 million, while bonds in the amount of $ 435 million were sold at a mixed value of 1.30%, which lowered the funding rate on these loans by approximately 85 basis points.

According to the Foreign Ministry, $ 857 million in loan buyback activity has approached levels last reached in the first quarter of 2020, with acquisitions including approximately $ 375 million in non-QM loans and $ 175 million. loans for business purposes.

“We completed the non-QM securitization in April 2021 and the reorientation of the securitization of recurring and non-performing loans in June 2021,” said Craig Knutson, CEO and President of the Ministry of Foreign Affairs. “These transactions bring significant benefits as they eliminate financing without market value, while significantly reducing borrowing costs, as well as generating more liquidity. Our income statement demonstrates the impact of these transactions as our interest expense decreased by 15%. ”

“We also took advantage of the strong housing market to continue to shrink our REO portfolio, selling 139 properties with a combined revenues of US $ 38.0 million and a profit of US $ 3.9 million.”

Learn more about the financial results of MFA Financial, Inc. for the 2nd quarter of 2021.


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