MFAN — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-05-05

• During the first quarter of 2026, fixed-income markets saw renewed volatility as investors navigated an anticipated significant transition in Federal Reserve leadership, escalating geopolitical tensions, and persistent concerns regarding inflation and deficit spending. During the quarter, market sen…

• For the quarter, our Lima One subsidiary originated Business purpose loans with a maximum unpaid principal balance of $219 million, a decrease from the $226 million originated in the fourth quarter of 2025. During the previous year, we expanded Lima One’s sales force, invested in technology initiati…

• At March 31, 2026, our total recorded investment in residential whole loans and REO was $8.9 billion, or 71.3% of our residential mortgage asset portfolio. Of this amount, $5.5 billion are Non-QM loans, $1.2 billion are Single-family rental loans, $0.7 billion are Single-family transitional loans, $…

• approximately $143.1 million of residential whole loan interest income on our consolidated statements of operations, representing an effective yield of 6.42%, with Single-family transitional loans generating an effective yield of 8.85%, Multifamily transitional loans generating an effective yield of…

• Quarter Ended March 31, 2026 Compared to the Quarter Ended December 31, 2025

Text removed vs the prior filing · source: 10-Q · 2025-11-06

• During the third quarter of 2025, fixed-income market conditions were mixed as investors reacted to evolving macroeconomic data and changing monetary policy expectations. In September 2025, the Federal Reserve reduced the Federal Funds rate by 25 basis points, and reinforced market expectations for …

• For the quarter, our Lima One subsidiary originated Business purpose loans with a maximum unpaid principal balance of $260 million, an increase from the $217 million originated in the second quarter of 2025. We continued to make progress augmenting Lima One’s sales force and made key hires to Lima O…

• At September 30, 2025, our total recorded investment in residential whole loans and REO was $9.0 billion, or 79.8% of our residential mortgage asset portfolio. Of this amount, $5.1 billion are Non-QM loans, $1.2 billion are Single-family rental loans, $0.8 billion are Single-family transitional loan…

• three months ended September 30, 2025. At September 30, 2025 and June 30, 2025, we had REO with an aggregate carrying value of $138.1 million and $135.8 million, respectively, which is included in Other assets on our consolidated balance sheets.

• On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (“OBBBA”), which includes several changes to U.S. federal income tax law, including the temporary and permanent extension of expiring provisions of the Tax Cuts and Jobs Act of 2017. The Company is still evaluating the poten…

Text added vs the prior filing · source: 10-Q · 2026-05-05

• Our investment process for Legacy RPL/NPL loans is focused on quantifying and pricing credit risk. Legacy RPL/NPL loans are acquired at purchase prices that are generally discounted to the contractual loan balances based on a number of factors, including

• the impaired credit history of the borrower and the value of the collateral securing the loan. In addition, as we generally own the mortgage-servicing rights associated with these loans, our process is also focused on selecting a sub-servicer with the appropriate expertise to mitigate losses and max…

• The following table presents certain information about our Residential whole loans as of March 31, 2026:

• Credit spreads measure the additional yield demanded by investors in financial instruments based on the credit risk associated with an instrument relative to benchmark interest rates. They are impacted by the available supply and demand for instruments with

• various levels of credit risk. Widening credit spreads would result in higher yields being required by investors in financial instruments. Credit spread widening generally results in lower values of the financial instruments we hold at that time, but will generally result in a higher yield on future…

Text removed vs the prior filing · source: 10-Q · 2025-11-06

• nonetheless may be less likely to prepay due to weak credit history and/or high LTV, we believe these loans exhibit positive duration. We estimate the duration of these residential whole loans using management’s assumptions.

• our derivative and other hedging transactions and securitized and other fixed rate debt, (1.76) for our Securities and zero for our Other assets and cash and cash equivalents.

• Our investment process for Legacy RPL/NPL loans is focused on quantifying and pricing credit risk. Legacy RPL/NPL loans are acquired at purchase prices that are generally discounted to the contractual loan balances based on a number of factors, including the impaired credit history of the borrower a…

• The following table presents certain information about our Residential whole loans as of September 30, 2025:

• Credit spreads measure the additional yield demanded by investors in financial instruments based on the credit risk associated with an instrument relative to benchmark interest rates. They are impacted by the available supply and demand for instruments with various levels of credit risk. Widening cr…