ABOUT US
MFA Mortgage Investments, Inc. is a real estate investment trust (REIT) primarily engaged in the business of investment, on a leveraged basis, in a portfolio of hybrid and adjustable-rate mortgage-backed securities issued or guaranteed by an agency of the U.S. government, such as the Government National Mortgage Association, or a federally chartered corporation, such as the Federal Home Loan Mortgage Corporation or Fannie Mae, and, to a lesser extent, high quality hybrid and adjustable-rate mortgage-backed securities rated in one of the two highest rating categories by at least one nationally recognized rating agency.
The mortgage-backed securities that MFA acquires are primarily secured by pools of hybrid and adjustable-rate mortgage loans on single family residences. Hybrid mortgage loans have interest rates that are fixed for a specified period and, thereafter, generally adjust annually to an increment over a pre-determined interest rate index. Interest rates on the hybrid and adjustable-rate mortgage loans collateralizing MFA's mortgage-backed securities are based on an index rate, such as the one-year constant maturity treasury rate, the London Interbank Offered Rate or the 11th District Cost of Funds Index.
MFA utilizes repurchase agreements, which typically bear interest rates reflective of the short-term London Interbank Offered Rate, to finance the acquisition of its hybrid and adjustable-rate mortgage-backed securities and other assets. MFA primarily generates net income by maintaining a positive spread between the interest and other income it earns on its investments and the cost of financing such investments and its operating costs. Unlike more traditional financial institutions, such as savings and loans and banks, MFA avoids the expense of a costly infrastructure and, due to its REIT status, corporate level taxation.
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