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Despite a profit in the fourth quarter, MFA Financial is still recovering from losses tied to the coronavirus.
Overall, the non-QM-centric real estate investment trust generated net income of $45.82 million in 4Q20. However, for the year, the REIT took a loss of $679.4 million.
MFA held non-QMs with an unpaid principal balance of around $2.4 billion at the end of 2020. During the fourth quarter, the firm acquired only $83.2 million of nonagency product and sold $951.6 million of its non-QM holdings through two mortgage-backed securities.
Craig Knutson, MFA’s president and CEO, noted that the REIT’s profitability took a hit in the fourth quarter as MFA paid off financing from Apollo Global Management and affiliates of Athene Holding that helped keep the company afloat earlier in the year. “MFA’s fourth quarter financial results were a continuation of a return to normal, as we put the capital transactions necessary to emerge from our COVID-19 pandemic-induced distress behind us,” he said.
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