Street Calls of the Week
NEW YORK - MFA Financial, Inc. (NYSE:MFA), a specialty finance company with a market capitalization of $942 million according to InvestingPro data, has closed its fourth non-qualified residential mortgage (Non-QM) securitization of 2025, bringing the company’s cumulative Non-QM issuance volume to $7.3 billion since its first sponsored issuance in 2020.
The latest transaction, MFA 2025-NQM4, is collateralized by 621 mortgage loans with an unpaid principal balance of $371.2 million secured by one-to-four family residential properties across the United States. The loan pool has a weighted average coupon of 7.68%, loan-to-value ratio of 68%, and credit score of 741. Based on InvestingPro analysis, MFA maintains strong liquidity with a current ratio of 31.85, indicating robust financial health.
"After additional purchases in Q3, the outstanding balance of our Non-QM loan portfolio has surpassed $5 billion," said Craig Knutson, MFA’s Chief Executive Officer, in a press release statement.
The loans in the securitization are serviced by Planet Home Lending LLC and Citadel Servicing Corp. S&P provided credit ratings for the transaction, with sold tranches rated AAA through BBB.
Bryan Wulfsohn, MFA’s President and Chief Investment Officer, noted that investors have participated regularly in the company’s Non-QM transactions, which he described as underscoring "the depth and reliability of securitized debt as a funding source for our residential mortgage investments."
MFA Financial is a specialty finance company that invests in residential mortgage loans, residential mortgage-backed securities and other real estate assets. The company also originates and services business purpose loans for real estate investors through its wholly owned subsidiary Lima One Capital. Notable for investors, MFA offers a significant 15.67% dividend yield and has maintained dividend payments for 28 consecutive years, as revealed by InvestingPro data, which offers comprehensive analysis through its Pro Research Report covering 1,400+ US equities.
In other recent news, MFA Financial reported its second-quarter earnings for 2025, which fell short of expectations. The company announced an earnings per share (EPS) of $0.24, missing the analyst forecast of $0.29, and reported revenue of $61.28 million, slightly below the expected $61.53 million. Despite the earnings miss, MFA Financial declared a regular quarterly cash dividend of $0.36 per share, payable on October 31, 2025, to stockholders of record as of September 30, 2025. RBC Capital maintained its Sector Perform rating and $10 price target for MFA Financial, although it noted potential volatility in the company’s distributable earnings per share in the near term. These developments are crucial for investors to consider in their decision-making process.
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