• BlackRock for residential mortgage debt.
• Vanguard, but its portfolio is solely residential mortgages and mortgage-backed securities.
• Prologis (a major real estate REIT), but for residential mortgage debt instead of physical properties.

• Non-agency Mortgage-Backed Securities (MBS): Investments in securities backed by residential mortgages that do not carry a government guarantee.
• Agency Mortgage-Backed Securities (MBS): Investments in securities backed by residential mortgages that are guaranteed by government-sponsored enterprises.
• Credit Risk Transfer Securities: Investments in securities that transfer credit risk associated with residential mortgages from government-sponsored enterprises to private investors.
• Residential Whole Loans: Direct investments in entire residential mortgage loans, including those that are performing, credit-deteriorated, or non-performing.
• Mortgage Servicing Rights Related Assets: Investments in assets derived from the right to collect mortgage payments and manage the administrative aspects of mortgage loans.

MFA Financial, Inc. (MFA) operates as a real estate investment trust (REIT) that invests in residential mortgage assets, including non-agency mortgage-backed securities (MBS), agency MBS, credit risk transfer securities, residential whole loans, and mortgage servicing rights related assets.

As an investment company, MFA Financial's business model is centered on generating income from the interest earned on its portfolio of these assets. It does not sell products or services to direct customers in the traditional sense of a customer-vendor relationship.

Therefore, MFA Financial does not have "major customers" in the way that companies selling goods or services do. Its revenue is derived from its investment activities and the performance of its asset portfolio.

Craig L. Knutson Chief Executive Officer and Director

Mr. Knutson has served as Chief Executive Officer of MFA Financial since August 2017. Prior to this, he held roles within MFA as President and Chief Operating Officer from January 2014 to July 2017, and Executive Vice President from 2008 to 2013. He began his career as an Analyst and then Associate in the Investment Banking Department of E.F. Hutton & Company Inc.

Michael C. Roper Chief Financial Officer

Mr. Roper was appointed Chief Financial Officer of MFA Financial in 2023. Before becoming CFO, he served as Chief Accounting Officer from 2021 to 2023 and has held various accounting and financial reporting positions since joining MFA in 2014. Earlier in his career, Mr. Roper was the Assistant Controller for Apollo Residential Mortgage, Inc. He started his career at Ernst & Young LLP, primarily focusing on providing client services to publicly traded mortgage REITs.

Bryan Wulfsohn President and Chief Investment Officer

Mr. Wulfsohn assumed the role of President of MFA Financial in September 2024 and also serves as Chief Investment Officer. He joined MFA in 2010. Prior to MFA, he was a Senior Financial Analyst at Inland Western Real Estate Trust, Inc. from 2008 to 2010, where he focused on corporate strategy. From 2005 to 2007, Mr. Wulfsohn was an associate in the capital markets group at CBA Commercial, LLC, a company involved in acquiring and securitizing small balance commercial mortgages.

Harold E. Schwartz Senior Vice President, General Counsel and Secretary

Mr. Schwartz joined MFA Financial in 2011. From 2001 to July 2011, he served as a Vice President and Senior Counsel for American Express Company, specializing in corporate, securities, corporate governance, and mergers and acquisitions matters. Between 1996 and 2000, Mr. Schwartz was the Senior Vice President, General Counsel and Secretary of Caribiner International, Inc., a business communications services and audio visual equipment rental company.

Lori Samuels Chief Loan Operations Officer

Ms. Samuels serves as Chief Loan Operations Officer at MFA Financial, overseeing asset management, underwriting, contract finance, and other loan-related operations. She has been with MFA since 2010, holding various asset management and loan operations positions. Ms. Samuels began her career at Fitch Ratings, Inc., focusing on residential credit, and also gained experience at BNY Mellon.

The key risks to MFA Financial (symbol: MFA) are primarily associated with the dynamic nature of the residential mortgage market and the company's operational model as a real estate investment trust (REIT) focused on mortgage assets.

1. Interest Rate Risk and Market Volatility: Fluctuations in interest rates pose a significant threat to MFA Financial's profitability and asset valuations. As a mortgage REIT, the company generates income from the spread between interest earned on its mortgage assets and its borrowing costs. Rising interest rates can increase the cost of borrowing for MFA, potentially reducing this net interest margin and impacting earnings. Additionally, changes in interest rates can affect the value of MFA's residential mortgage assets and mortgage-backed securities, leading to diminished returns and lower dividend payouts.

2. Credit Risk and Loan Performance: MFA Financial invests in a variety of residential mortgage assets, including non-agency mortgage-backed securities and residential whole loans, some of which are credit-deteriorated or non-performing. This exposes the company to credit risk, meaning the risk that borrowers may default on their loans. Rising delinquencies, particularly in its loan portfolio, can directly impact the income generated by the REIT and affect its book value.

3. Dividend Coverage and Debt Servicing: A significant risk for MFA Financial, highlighted in recent analyses, is the sustainability of its dividend payments and the coverage of its debt. Critics note that MFA's dividends have not been well covered by its earnings or free cash flow, and its debt is weakly covered by operating cash flow. This financial strain can pressure future payouts and raise concerns about the company's ability to maintain shareholder value if earnings or cash generation do not improve.

The clear emerging threat for MFA Financial is the increasing impact of climate-related physical risks on residential properties and the mortgage assets backed by them. As extreme weather events such as floods, wildfires, and severe storms become more frequent and intense, certain geographical regions face heightened risks of property damage, increased insurance costs, and potential depreciation in property values. This directly threatens the credit quality and collateral value of MFA Financial's residential whole loans, non-agency mortgage-backed securities, and other residential mortgage assets, potentially leading to higher default rates and reduced asset performance in affected areas.

MFA Financial, Inc. (symbol: MFA) operates within the United States, focusing on various segments of the residential mortgage market. The addressable markets for their main products and services in the U.S. region are substantial:

• Non-Agency Mortgage-Backed Securities (MBS): The U.S. non-agency residential mortgage-backed securities (RMBS) market had over $1.7 trillion in outstanding securities as of December 31, 2025. New issuance in the non-agency MBS market reached $185.85 billion in 2025.
• Agency MBS: The U.S. mortgage-backed securities (MBS) market, largely dominated by agency MBS, had over $11 trillion in outstanding securities as of mid-2023, and surpassed $12 trillion in 2021. Loans securitized by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac accounted for approximately $6.5 trillion of all outstanding mortgage balances as of June 2025. This market is considered the second-largest and second most-liquid bond market globally, after the U.S. Treasury market.
• Credit Risk Transfer (CRT) Securities: The U.S. credit risk transfer (CRT) market has grown to more than $50 billion as of April 2024, referencing approximately $2 trillion of single-family mortgage loans. U.S. banks issued an estimated $7 billion in CRTs in 2023.
• Residential Whole Loans: The overall U.S. residential mortgage market had a market value exceeding $14 trillion as of November 2024, which includes both securitized and whole loans. Within new originations, non-qualified mortgage (non-QM) origination is estimated at about $6 billion per month, with projections for total origination to exceed $100 billion in 2025; approximately half of these are purchased by investors as whole loans.
• Mortgage Servicing Rights (MSR) Related Assets: Nonbank mortgage companies owned the servicing rights on 54 percent of the total outstanding U.S. mortgage balances in 2022. With total outstanding mortgage balances in the U.S. at $12.94 trillion as of June 2025, this represents a significant market of serviced mortgage balances from which MSRs are derived. Additionally, banks held $2.82 trillion of servicing for others at the end of 2025. The fair value of mortgage servicing rights on bank servicing portfolios was $42.62 billion at the end of 2025. The U.S. loan servicing market is projected to grow at a CAGR of 13% from 2022 to 2028.

Here are 3-5 expected drivers of future revenue growth for MFA Financial (symbol: MFA) over the next 2-3 years:

1. Continued Investment in Non-Qualified Mortgage (Non-QM) Loans: MFA Financial considers non-QM whole loans a core growth engine and has been actively expanding this portfolio. In Q4 2024, the company added $470 million in non-QM loans, growing its portfolio to $4.4 billion by year-end. Further, in 2025, MFA completed five securitizations collateralized by $1.8 billion in Unpaid Principal Balance (UPB) of Non-QM loans, and acquired $443 million in non-QM loans in Q4 2025, maintaining a $5.3 billion non-QM portfolio. The average coupon on all loans acquired in Q3 2025 was 8.3%, with expected incremental Return on Equity (ROE) for new investments in the mid-teens.
2. Expansion of Agency Mortgage-Backed Securities (MBS) Portfolio: MFA Financial is strategically emphasizing agency assets to drive future growth. The company significantly grew its agency MBS portfolio by almost 50% to $1.4 billion in Q4 2024. This expansion continued into 2025, with an additional $1.2 billion of Agency MBS acquired in Q4, bringing the total Agency MBS position to $3.3 billion by December 31, 2025. Management believes spreads and carry in agency MBS are attractive, in addition to providing liquidity benefits.
3. Growth Initiatives at Lima One Capital: Lima One, MFA Financial's wholly-owned subsidiary specializing in business purpose loans, is poised for significant growth. In Q4 2025, Lima One originated $226 million of loans across various products, generating $5.7 million in mortgage banking income. The company plans significant growth initiatives for Lima One, including new hires, expanded lending channels, and the relaunch of multifamily lending, with meaningful growth anticipated in late 2026.
4. Capital Redeployment from Loan Resolutions and Securitizations: MFA Financial is actively working to resolve delinquent loans and optimize its capital structure to free up funds for higher-yielding investments. In Q4 2025, $150 million of delinquent loans were resolved, with management expecting to redeploy this capital at "mid-teen ROEs". The company also intends to utilize "call-and-reissue securitizations," which could unlock an estimated $50 million to $100 million of capital. An improving 60+ day delinquency rate further supports the availability of capital for productive investments.
5. Favorable Interest Rate Environment and Strategic Asset Allocation: Management has expressed optimism regarding a "constructive fixed income market" in Q1 2025 and a "more constructive macro backdrop" in Q4 2025, citing potential Fed rate cuts, lower Treasury yields, and a steeper yield curve. This environment creates opportunities to acquire new assets at attractive yields, with new investments expected to generate mid-teen ROEs. MFA's net interest income rose to $231.1 million in 2025 from $202.7 million in 2024, demonstrating the positive impact of its asset allocation strategy.

Share Repurchases

• MFA Financial's Board of Directors authorized a new $200 million stock repurchase program for common stock in February 2026, which is in effect through the end of 2028 and supersedes a prior program that expired at the end of 2025.
• In 2025, the company repurchased 1,026,117 shares of common stock.
• During the third quarter of 2025, approximately 500,000 shares of common stock were repurchased at an estimated 27% discount to economic book value.

Share Issuance

• MFA Financial continued to issue preferred shares, including approximately 70,000 shares of Series B and 125,000 shares of Series C preferred stock for $4.5 million in Q3 2025, to fund common stock repurchases.

Outbound Investments

• MFA Financial purchased $2.1 billion of Agency Mortgage-Backed Securities (MBS) throughout 2025.
• In the fourth quarter of 2025, the company acquired nearly $2 billion of residential mortgage assets, consisting of $1.2 billion of Agency securities, $443 million of non-Qualified Mortgage (non-QM) loans, and $226 million of new business purpose loans originated by Lima One.
• Throughout 2025, MFA made approximately $4.8 billion of investments across its target asset classes.