MFA Financial reported financial results for the third quarter ended September 30, 2022. The company faced challenging market conditions, but focused on maintaining liquidity, fortifying the balance sheet, and decreasing sensitivity to interest rate increases. The investment portfolio remained essentially unchanged, with loan acquisitions offset by portfolio run-off and asset valuation declines. Overall yields on residential whole loans increased, resulting in a net interest spread increase.
MFA Financial ended the quarter with $434 million in unrestricted cash.
The company had approximately $1.4 billion of available but unused financing capacity.
The loan portfolio has significant embedded home price appreciation, lowering the average LTV of the mortgage loan portfolio to approximately 57%.
Overall leverage increased slightly to 3.6 times debt to equity, but recourse leverage is 1.7 times debt to equity.
MFA Financial did not provide specific forward guidance in the Q3 2022 earnings report.
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