MFA Financial, Inc.’s residential mortgage investment portfolio jumped $ 299 million in the second quarter of 2021, with loan buying activity that exceeded the liquidation of the portfolio. The company’s loan acquisitions have grown significantly, more than tripling its first quarter 2021 numbers. That growth is largely attributed to its $ 373.6 million in non-QM loans.
Two securitizations were completed during the quarter, according to the company. These securitizations included a securitization of $ 394 million of non-QM loans, with $ 371 million of bonds sold at a combined cost of 1.37%, reducing the funding rate for these loans by approximately 200 basis points. , according to the company’s financial results. In addition, MFA completed a securitization of $ 473 million of previously securitized loans and other reproductive loans, with $ 435 million of bonds sold at a mixed cost of 1.30%, lowering the funding rate of these. loans of about 85 basis points.
According to MFA, loan purchase activity of $ 857 million approached the last levels reached in the first quarter of 2020, with acquisitions comprising approximately $ 375 million in non-QM loans and $ 175 million in loans to non-QM. commercial purpose.
“We finalized a Non-QM securitization in April 2021 and a new lever of a reproductive and non-performing loan securitization in June 2021,” said Craig Knutson, CEO and President of MFA. “These transactions offer a significant advantage by providing non-mark-to-market financing while significantly reducing borrowing costs and also generating more liquidity. Our income statement shows the impact of these transactions, since our interest charges have decreased by 15%.
“We also took advantage of a strong housing market to further reduce our REO portfolio, selling 139 properties for total proceeds of $ 38.0 million and generating $ 3.9 million in earnings. “
Learn more about MFA Financial, Inc.’s second quarter 2021 financial results.