8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 4, 2015

MFA FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Maryland	1-13991	13-3974868
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation		Identification No.)
or organization)

350 Park Avenue, 20th Floor
New York, New York	10022
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 207-6400

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition and

Item 7.01 Regulation FD Disclosure

MFA Financial, Inc. (“MFA”) issued a press release, dated August 4, 2015, announcing its financial results for the quarter ended June 30, 2015, which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.  In addition, in conjunction with the announcement of its financial results, MFA issued additional information relating to its 2015 second quarter financial results.  Such additional information is attached to this report as Exhibit 99.2 and is hereby incorporated herein by reference.

The information referenced in this Current Report on Form 8-K (including Exhibit 99.1) is being “furnished” and, as such, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section.  The information set forth in this Current Report on Form 8-K (including Exhibit 99.1) is not be incorporated by reference into any registration statement or other document filed by MFA pursuant to the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such filing.

As discussed therein, the press release and additional information may contain forward-looking statements within the meaning of the Securities Act and the Exchange Act and, as such, may involve known and unknown risks, uncertainties and assumptions.  These forward-looking statements relate to MFA’s current expectations and are subject to the limitations and qualifications set forth in the press release and additional information, as well as in MFA’s other documents filed with the SEC, including, without limitation, that actual events and/or results may differ materially from those projected in such forward-looking statements.

Exhibit

99.1Press Release, dated August 4, 2015, announcing MFA’s financial results for the quarter ended June 30, 2015.

99.2        Additional information relating to the financial results of MFA for the quarter     ended June 30, 2015.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MFA FINANCIAL, INC.
	(REGISTRANT)
	By:	/s/ Harold E. Schwartz
		Name: Harold E. Schwartz
		Title: Senior Vice President and General Counsel
Date: August 4, 2015

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release, dated August 4, 2015, announcing MFA Financial, Inc.’s financial results for the quarter ended June 30, 2015.
99.2	Additional information relating to the financial results of MFA Financial, Inc. for the quarter ended June 30, 2015.

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EX-99.1

Exhibit 99.1

MFA

FINANCIAL, INC.

350 Park Avenue

New York, New York 10022

PRESS RELEASE		FOR IMMEDIATE RELEASE
August 4, 2015		NEW YORK METRO
INVESTOR CONTACT:	InvestorRelations@mfafinancial.com	NYSE: MFA
	212-207-6433
	www.mfafinancial.com
MEDIA CONTACT:	Abernathy MacGregor
	Tom Johnson, Andrew Johnson
	212-371-5999

MFA Financial, Inc.

Announces Second Quarter 2015 Financial Results

NEW YORK - MFA Financial, Inc. (NYSE:MFA) today announced financial results for the second quarter ended June 30, 2015.

Second Quarter 2015 and other highlights:

·Generated second quarter net income available to common shareholders of $74.3 million, or $0.20 per common share (based on 370.2 million weighted average common shares outstanding).  As of June 30, 2015, book value per common share was $7.96.

·On July 31, 2015, MFA paid its second quarter 2015 dividend of $0.20 per share of common stock to shareholders of record as of June 29, 2015.

·Subsequent to June 30, 2015, MFA’s wholly-owned subsidiary, MFA Insurance, Inc. became a member of the Federal Home Loan Bank (“FHLB”) of Des Moines.  We are excited to add this partner as a counterparty and look forward to working together with FHLB Des Moines to further its core mission of supporting housing finance.

In the second quarter, both net income and dividend per common share were $0.20.  Net income of $74.3 million includes $7.6 million of gains realized on sales of MBS.

William Gorin, MFA’s CEO, said, “In the second quarter, we continued to identify and acquire credit sensitive residential mortgage assets that generate earnings without increasing MFA’s overall interest rate exposure.  We grew our holdings of securities backed by re-performing and non-performing loans to $2.592 billion while moving forward with the acquisition of re-performing and non-performing whole loans, bringing our holdings of credit sensitive residential whole loans to $429.3 million.  In addition, we sold $16.3 million of Non-Agency MBS issued prior to 2008 (“Legacy Non-Agency MBS”),

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realizing a gain of $7.6 million.  This is the twelfth consecutive quarter we have realized gains through selected sales of Legacy Non-Agency MBS based on our projections of future cash flows relative to market pricing.  We did not acquire any Agency MBS in this quarter.

“MFA remains positioned for a period when Federal Reserve monetary policy may become more variable based on measures of the labor markets, indicators of inflation, international developments and other incoming data.  Through asset selection and hedging strategy, the estimated effective duration, a gauge of MFA’s interest rate sensitivity, remains below 1.0 and measured 0.61 at quarter-end. Leverage, which reflects the ratio of our financing obligations to equity, was 3.3:1 at quarter-end.”

Craig Knutson, MFA’s President and COO, added, “MFA’s portfolio asset selection process continues to emphasize residential mortgage credit exposure while seeking to minimize sensitivity to interest rates.  Our Legacy Non-Agency portfolio has benefited from improved housing fundamentals as LTVs decrease and delinquencies decline, thus lowering our expectations of future defaults and reducing expected future losses.  Our RPL/NPL MBS portfolio has credit protection through deal structure and subordination, while the short term nature of the cash flows minimizes its sensitivity to interest rate changes.  And our credit sensitive residential whole loans offer additional exposure to residential mortgage credit while offering us the opportunity to improve outcomes through sensible and effective servicing decisions.”

MFA’s Legacy Non-Agency MBS had a face amount of $4.809 billion with an amortized cost of $3.602 billion and a net purchase discount of $1.207 billion at June 30, 2015.  This discount consists of a $847.0 million credit reserve and other-than-temporary impairments and a $359.6 million net accretable discount.  We believe this credit reserve appropriately factors in remaining uncertainties regarding underlying mortgage performance and the potential impact on future cash flows.  Our Legacy Non-Agency MBS loss adjusted yield of 7.59% for the second quarter is based on projected defaults equal to 23% of underlying loan balances.  On average, these loans are approximately nine years seasoned and approximately 14% are currently 60 or more days delinquent.

The Agency MBS portfolio had an average amortized cost basis of 103.8% of par as of June 30, 2015, and generated a 1.89% yield in the second quarter.  The Legacy Non-Agency MBS portfolio had an average amortized cost of 74.9% of par as of June 30, 2015, and generated a loss-adjusted yield of 7.59% in the second quarter.  At the end of the second quarter, MFA held approximately $2.592 billion of the senior most tranches of RPL/NPL MBS.  These securities had an amortized cost of 99.9% of par and generated a 3.66% yield for the quarter.

In addition, at June 30, 2015, our investments in credit sensitive residential whole loans totaled $429.3 million.  Of this amount, $245.4 million is recorded at carrying value, or 84.0% of the unpaid principal balance and generated a loss-adjusted yield of 6.88% (6.20% net of servicing costs) during the quarter and $183.9 million is recorded at fair value in our consolidated balance sheet.  On this portion of the portfolio we recorded gains for the quarter of approximately $3.2 million, primarily reflecting coupon interest payments received and changes in the fair value of the underlying loans during the quarter.

For the three months ended June 30, 2015, MFA’s costs for compensation and benefits and other general and administrative expenses were $11.2 million or an annualized 1.43% of stockholders’ equity as of June 30, 2015.

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The following table presents the weighted average prepayment speed on MFA’s MBS portfolio.

Table 1

	Second Quarter 2015 Average CPR		First Quarter 2015 Average CPR
Agency MBS	14.8	%	10.9	%
Legacy Non-Agency MBS	14.8	%	11.1	%
RPL/NPL MBS (1)	28.6	%	19.6	%

(1)All principal payments are considered to be prepayments for CPR purposes. Excludes RPL/NPL MBS that have not had a principal payment.

As of June 30, 2015, under its swap agreements, MFA had a weighted average fixed-pay rate of interest of 1.82% and a floating receive rate of 0.19% on notional balances totaling $3.050 billion, with an average maturity of 51 months.

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The following table presents MFA’s asset allocation as of June 30, 2015 and the second quarter 2015 yield on average interest earning assets, average cost of funds and net interest rate spread for the various asset types.

Table 2

ASSET ALLOCATION

At June 30, 2015	Agency MBS			Legacy Non-Agency MBS			RPL/NPL MBS			Residential Whole Loans, at Carrying Value			Residential Whole Loans, at Fair Value			Other, net (1)			Total
($ in Thousands)
Fair Value/ Carrying Value	$	5,331,211		$	4,290,462		$	2,591,691		$	245,402		$	183,861		$	411,437		$	13,054,064
Less Payable for Unsettled Purchases	—			—			—			—			(46,468		)	—			(46,468		)
Less Repurchase Agreements	(4,672,707		)	(2,692,811		)	(2,044,697		)	(46,449		)	(85,451		)	(92,921		)	(9,635,036		)
Less Securitized Debt	—			(62,320		)	—			—			—			—			(62,320		)
Less Senior Notes	—			—			—			—			—			(100,000		)	(100,000		)
Equity Allocated	$	658,504		$	1,535,331		$	546,994		$	198,953		$	51,942		$	218,516		$	3,210,240
Less Swaps at Market Value	—			—			—			—			—			(64,571		)	(64,571		)
Net Equity Allocated	$	658,504		$	1,535,331		$	546,994		$	198,953		$	51,942		$	153,945		$	3,145,669
Debt/Net Equity Ratio (2)	7.10		x	1.79		x	3.74		x	0.23		x	2.54		x	—			3.27		x
For the Quarter Ended June 30, 2015
Yield on Average Interest Earning Assets (3)	1.89		%	7.59		%	3.66		%	6.88		%	N/A			—		%	4.07		%
Less Average Cost of Funds (4)	(1.06		)	(2.77		)	(1.60		)	(2.26		)	(2.26		)	—			(1.74		)
Net Interest Rate Spread	0.83		%	4.82		%	2.06		%	4.62		%	N/A			—		%	2.33		%

(1)Includes cash and cash equivalents and restricted cash of $286.5 million, securities obtained and pledged as collateral, $128.9 million of CRT securities, interest receivable, goodwill, prepaid and other assets, obligation to return securities obtained as collateral, interest payable, dividends payable and accrued expenses and other liabilities.

(2)Represents the sum of borrowings under repurchase agreements, payable for unsettled MBS purchases and securitized debt as a multiple of net equity allocated.  The numerator of our Total Debt/Net Equity ratio also includes the obligation to return securities obtained as collateral of $498.3 million, Senior Notes and repurchase agreements financing CRT security purchases.

(3)Yields reported on our interest earning assets are calculated based on the interest income recorded and the average amortized cost for the quarter of the respective asset.  At June 30, 2015 the amortized cost of our interest earning assets were as follows: Agency MBS  — $5,263,462; Legacy Non-Agency MBS - $3,602,210; RPL/NPL MBS - $2,590,352; and Residential Whole Loans at carrying value - $245,402. In addition, the yield for residential whole loans at carrying value was 6.20% net of 68 basis points of servicing fee expense incurred during the quarter.  For GAAP reporting purposes, such expenses are included in Loan servicing and other related operating expenses in our statement of operations.  Interest payments received on residential whole loans at fair value is reported in Other Income as Net gain on residential whole loans held at fair value in our statement of operations.  Accordingly, no yield is presented as such loans are not included in interest earning assets for reporting purposes.

(4)Average cost of funds includes interest on repurchase agreements, the cost of swaps, Senior Notes and securitized debt. Agency cost of funds includes 70 basis points and Legacy Non-Agency cost of funds includes 68 basis points associated with Swaps to hedge interest rate sensitivity on these assets.

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At June 30, 2015, MFA’s $9.620 billion of Agency and Legacy Non-Agency MBS, were backed by Hybrid, adjustable and fixed-rate mortgages.  Additional information about these MBS, including average months to reset and three-month average CPR, is presented below:

Table 3

	Agency MBS					Legacy Non-Agency MBS (1)					Total (1)
($ in Thousands) Time to Reset	Fair Value (2)		Average Months to Reset (3)	3 Month Average CPR (4)		Fair Value		Average Months to Reset (3)	3 Month Average CPR (4)		Fair Value (2)		Average Months to Reset (3)	3 Month Average CPR (4)
< 2 years (5)	$	2,109,664	7	17.3	%	$	2,812,519	6	13.4	%	$	4,922,183	6	15.2	%
2-5 years	983,540		40	19.7		121,220		25	10.8		1,104,760		39	18.6
> 5 years	262,155		79	9.7		—		—	—		262,155		79	9.7
ARM-MBS Total	$	3,355,359	22	17.4	%	$	2,933,739	7	13.4	%	$	6,289,098	15	15.3	%
15-year fixed (6)	$	1,974,526		10.4	%	$	9,834		7.1	%	$	1,984,360		10.4	%
30-year fixed (6)	—			—		1,341,676			18.2		1,341,676			18.2
40-year fixed (6)	—			—		5,213			14.4		5,213			14.4
Fixed-Rate Total	$	1,974,526		10.4	%	$	1,356,723		18.1	%	$	3,331,249		13.8	%
MBS Total	$	5,329,885		14.8	%	$	4,290,462		14.8	%	$	9,620,347		14.8	%

(1)Excludes $2.592 billion of RPL/NPL MBS. Refer to Table 4 for further information.

(2)Does not include principal payments receivable of $1.3 million.

(3)MTR or Months to Reset is the number of months remaining before the coupon interest rate resets. At reset, the MBS coupon will adjust based upon the underlying benchmark interest rate index, margin and periodic or lifetime caps.  The MTR does not reflect scheduled amortization or prepayments.

(4)3 month average CPR weighted by positions as of beginning of each month in the quarter.

(5)Includes floating rate MBS that may be collateralized by fixed-rate mortgages.

(6)Information presented based on data available at time of loan origination.

Table 4

The following table presents certain information about our RPL/NPL MBS portfolio at June 30, 2015:

($ in Thousands)	Fair Value		Net Coupon		Months to Step-Up (1)	Current Credit Support (2)		Original Credit Support		3 Month Average Bond CPR (3)
Re-Performing MBS	$	602,636	3.69	%	22	45	%	40	%	28.7	%
Non-Performing MBS	1,989,055		3.58		29	50		49		28.5
Total RPL/NPL MBS	$	2,591,691	3.60	%	27	49	%	47	%	28.6	%

(1)Months to step-up is the weighted average number of months remaining before the coupon interest rate increases a cumulative 300 basis points.  We anticipate that the securities will be redeemed prior to the step-up date.

(2)Credit Support for a particular security is expressed as a percentage of all outstanding mortgage loan collateral.  A particular security will not be subject to principal loss as long as credit enhancement is greater than zero.

(3)All principal payments are considered to be prepayments for CPR purposes.  Excludes RPL/NPL MBS that have not had a principal payment.

Webcast

MFA Financial, Inc. plans to host a live audio webcast of its investor conference call on Tuesday, August 4, 2015, at 10:00 a.m. (Eastern Time) to discuss its second quarter 2015 financial results. The live audio webcast will be accessible to the general public over the internet at http://www.mfafinancial.com through the “Webcasts & Presentations” link on MFA’s home page.  To listen to the conference call over the internet, please go to the MFA website at least 15 minutes before the call to register and to download and install any needed audio software.  Earnings presentation materials will be posted on the MFA website prior to the conference call and an audio replay will be available on the website following the call.

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When used in this press release or other written or oral communications, statements which are not historical in nature, including those containing words such as “will,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions, are intended to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions. Statements regarding the following subjects, among others, may be forward-looking: changes in interest rates and the market value of MFA’s MBS; changes in the prepayment rates on the mortgage loans securing MFA’s MBS; changes in the default rates and management’s assumptions regarding default rates on the mortgage loans securing MFA’s Non-Agency MBS; MFA’s ability to borrow to finance its assets and the terms, including the cost, maturity and other terms, of any such borrowing; implementation of or changes in government regulations or programs affecting MFA’s business; MFA’s estimates regarding taxable income the actual amount of which is dependent on a number of factors, including, but not limited to, changes in the amount of interest income and financing costs, the method elected by the Company to accrete the market discount on Non-Agency MBS and the extent of prepayments, realized losses and changes in the composition of MFA’s Agency MBS and Non-Agency MBS portfolios that may occur during the applicable tax period, including gain or loss on any MBS disposals; the timing and amount of distributions to stockholders, which are declared and paid at the discretion of MFA’s Board of Directors and will depend on, among other things, MFA’s taxable income, its financial results and overall financial condition and liquidity, maintenance of its REIT qualification and such other factors as the Board deems relevant; MFA’s ability to maintain its qualification as a REIT for federal income tax purposes; MFA’s ability to maintain its exemption from registration under the Investment Company Act of 1940, as amended (or the Investment Company Act), including statements regarding the Concept Release issued by the SEC relating to interpretive issues under the Investment Company Act with respect to the status under the Investment Company Act of certain companies that are in engaged in the business of acquiring mortgages and mortgage-related interests; MFA’s ability to successfully implement its strategy to grow its residential whole loan portfolio; expected returns on our investments in non-performing residential whole loans (NPLs), which are affected by, among other things, the length of time required to foreclose upon, sell, liquidate or otherwise reach a resolution of the property underlying the NPL, home price values, amounts advanced to carry the asset (e.g., taxes, insurance, maintenance expenses, etc. on the underlying property) and the amount ultimately realized upon resolution of the asset; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. These and other risks, uncertainties and factors, including those described in the annual, quarterly and current reports that MFA files with the Securities and Exchange Commission, could cause MFA’s actual results to differ materially from those projected in any forward-looking statements it makes. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect MFA. Except as required by law, MFA is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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MFA FINANCIAL, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)	June 30, 2015			December 31, 2014
	(Unaudited)
Assets:
Mortgage-backed securities (“MBS”) and credit risk transfer (“CRT”) securities:
Agency MBS, at fair value ($4,968,333 and $5,519,813 pledged as collateral, respectively)	$	5,331,211		$	5,904,207
Non-Agency MBS, at fair value ($5,144,186 and $2,377,343 pledged as collateral, respectively)	6,222,676			3,358,426
Non-Agency MBS transferred to consolidated variable interest entities (“VIEs”), at fair value	659,477			1,397,006
CRT securities, at fair value ($116,690 and $94,610 pledged as collateral, respectively)	128,910			102,983
Securities obtained and pledged as collateral, at fair value	498,336			512,105
Residential whole loans, at carrying value ($66,279 and $67,536 pledged as collateral, respectively)	245,402			207,923
Residential whole loans, at fair value ($131,065 and $143,072 pledged as collateral, respectively)	183,861			143,472
Cash and cash equivalents	218,492			182,437
Restricted cash	68,057			67,255
Interest receivable	31,263			32,581
Derivative instruments:
MBS linked transactions, net (“Linked Transactions”), at fair value	—			398,336
Interest rate swap agreements (“Swaps”), at fair value	849			3,136
Goodwill	7,189			7,189
Prepaid and other assets	59,160			37,688
Total Assets	$	13,654,883		$	12,354,744
Liabilities:
Repurchase agreements	$	9,635,036		$	8,267,388
Securitized debt	62,320			110,574
Obligation to return securities obtained as collateral, at fair value	498,336			512,105
8% Senior Notes due 2042 (“Senior Notes”)	100,000			100,000
Accrued interest payable	13,759			13,095
Swaps, at fair value	65,420			62,198
Dividends and dividend equivalents payable	74,584			74,529
Accrued expenses and other liabilities	59,759			11,583
Total Liabilities	$	10,509,214		$	9,151,472
Stockholders’ Equity:
Preferred stock, $.01 par value; 7.50% Series B cumulative redeemable; 8,050 shares authorized; 8,000 shares issued and outstanding ($200,000 aggregate liquidation preference)	$	80		$	80
Common stock, $.01 par value; 886,950 shares authorized; 370,196 and 370,084 shares issued and outstanding, respectively	3,702			3,701
Additional paid-in capital, in excess of par	3,016,362			3,013,634
Accumulated deficit	(569,055		)	(568,596		)
Accumulated other comprehensive income	694,580			754,453
Total Stockholders’ Equity	$	3,145,669		$	3,203,272
Total Liabilities and Stockholders’ Equity	$	13,654,883		$	12,354,744

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MFA FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended June 30,					Six Months Ended June 30,
(In Thousands, Except Per Share Amounts)	2015			2014		2015			2014
	(Unaudited)					(Unaudited)
Interest Income:
Agency MBS	$	25,739		$	37,609	$	57,412		$	76,938
Non-Agency MBS	80,916			43,473		162,164			86,628
Non-Agency MBS transferred to consolidated VIEs	11,595			37,543		23,638			76,207
CRT securities	1,524			—		2,884			—
Residential whole loans held at carrying value	4,193			—		7,784			—
Cash and cash equivalent investments	29			17		56			43
Interest Income	$	123,996		$	118,642	$	253,938		$	239,816
Interest Expense:
Repurchase agreements	$	40,223		$	36,690	$	81,405		$	73,419
Securitized debt	618			1,871		1,368			4,056
Senior Notes	2,008			2,008		4,016			4,015
Interest Expense	$	42,849		$	40,569	$	86,789		$	81,490
Net Interest Income	$	81,147		$	78,073	$	167,149		$	158,326
Other-Than-Temporary Impairments:
Total other-than-temporary impairment losses	$	(130	)	$	—	$	(525	)	$	—
Portion of loss reclassed from other comprehensive income	(168		)	—		(180		)	—
Net Impairment Losses Recognized in Earnings	$	(298	)	$	—	$	(705	)	$	—
Other Income, net:
Unrealized net gains and net interest income from Linked Transactions	$	—		$	3,776	$	—		$	7,027
Net gain on residential whole loans held at fair value	3,163			—		5,197			—
Gain on sales of MBS	7,617			7,852		14,052			11,423
Other, net	(617		)	708		(306		)	292
Other Income, net	$	10,163		$	12,336	$	18,943		$	18,742
Operating and Other Expense:
Compensation and benefits	$	6,531		$	5,901	$	13,277		$	12,408
Other general and administrative expense	4,678			4,081		8,135			7,630
Excise tax and interest	—			1,175		—			1,175
Loan servicing and other related operating expenses	1,732			526		3,731			941
Operating and Other Expense	$	12,941		$	11,683	$	25,143		$	22,154
Net Income	$	78,071		$	78,726	$	160,244		$	154,914
Less Preferred Stock Dividends	3,750			3,750		7,500			7,500
Net Income Available to Common Stock and Participating Securities	$	74,321		$	74,976	$	152,744		$	147,414
Earnings per Common Share - Basic and Diluted	$	0.20		$	0.20	$	0.41		$	0.40
Dividends Declared per Share of Common Stock	$	0.20		$	0.20	$	0.40		$	0.40

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EX-99.2

Exhibit 99.2

Second Quarter 2015 Earnings Presentation

Forward Looking Statements 2 When used in this presentation or other written or oral communications, statements which are not historical in nature, including those containing words such as “will,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions, are intended to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions. Statements regarding the following subjects, among others, may be forward-looking: changes in interest rates and the market value of MFA’s MBS; changes in the prepayment rates on the mortgage loans securing MFA’s MBS; changes in the default rates and management’s assumptions regarding default rates on the mortgage loans securing MFA’s Non-Agency MBS; MFA’s ability to borrow to finance its assets and the terms, including the cost, maturity and other terms, of any such borrowing; implementation of or changes in government regulations or programs affecting MFA’s business; MFA's estimates regarding taxable income the actual amount of which is dependent on a number of factors, including, but not limited to, changes in the amount of interest income and financing costs, the method elected by the Company to accrete the market discount on Non-Agency MBS and the extent of prepayments, realized losses and changes in the composition of MFA's Agency MBS and Non-Agency MBS portfolios that may occur during the applicable tax period, including gain or loss on any MBS disposals; the timing and amount of distributions to stockholders, which are declared and paid at the discretion of MFA's Board of Directors and will depend on, among other things, MFA's taxable income, its financial results and overall financial condition and liquidity, maintenance of its REIT qualification and such other factors as the Board deems relevant; MFA’s ability to maintain its qualification as a REIT for federal income tax purposes; MFA’s ability to maintain its exemption from registration under the Investment Company Act of 1940, as amended (or the Investment Company Act), including statements regarding the Concept Release issued by the SEC relating to interpretive issues under the Investment Company Act with respect to the status under the Investment Company Act of certain companies that are in engaged in the business of acquiring mortgages and mortgage-related interests; MFA’s ability to successfully implement its strategy to grow its residential whole loan portfolio; expected returns on our investments in non-performing residential whole loans (NPLs), which are affected by, among other things, the length of time required to foreclose upon, sell, liquidate or otherwise reach a resolution of the property underlying the NPL, home price values, amounts advanced to carry the asset (e.g., taxes, insurance, maintenance expenses, etc. on the underlying property) and the amount ultimately realized upon resolution of the asset; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. These and other risks, uncertainties and factors, including those described in the annual, quarterly and current reports that MFA files with the Securities and Exchange Commission, could cause MFA’s actual results to differ materially from those projected in any forward-looking statements it makes. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect MFA. Except as required by law, MFA is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Executive Summary In this low interest rate environment, we continue to identify and acquire attractive credit sensitive residential mortgage assets. In the second quarter we generated EPS and dividend per share of $0.20. We remain positioned for a more flexible monetary policy by the Federal Reserve. Net duration of 0.61 Leverage ratio of 3.3:1 73% of MBS are adjustable, hybrid or step-up We increased lending counterparty diversification as wholly-owned MFA Insurance, Inc., has joined the Federal Home Loan Bank of Des Moines. 3

Second Quarter Investment Update We have continued to identify and acquire credit sensitive residential mortgage assets that generate earnings without increasing MFA’s overall interest rate exposure. At the same time we are allowing more interest rate sensitive Agency MBS assets to pay down. (1) $ in Millions 4 June 30, 2015 (1) March 31, 2015 (1) Change(1) 3 Year Step-up RPL/NPL Securities $2,592 $2,318 $274 Re-performing and Non-performing Loans $429 $387 $42 Credit Risk Transfer Securities $129 $127 $2 Legacy Non-Agency MBS $4,290 $4,537 ($247) Agency MBS $5,331 $5,671 ($340)

MFA’s Yields and Spreads Remain Attractive 5 Second Quarter 2015 First Quarter 2015 Yield on Interest Earning Assets 4.07% 4.22% Net Interest Rate Spread 2.33% 2.44% Debt Equity Ratio 3.3x 3.3x EPS $0.20 $0.21

Yields and Spreads by Asset Type 6 Quarter Ended June 30, 2015 Asset Yield/Return Cost of Funds Net Spread Debt/Net Equity Ratio Agency MBS 1.89% (1.06)% 0.83% 7.10x Non-Agency MBS 7.59% (2.77)% 4.82% 1.73x RPL/NPL MBS 3.66% (1.60)% 2.06% 4.07x RPL Whole Loans 6.20% (2.26)% 3.94% 0.23x NPL Whole Loans -(1) (2.26)% -(1) 2.54x (1) Residential whole loans held at fair value produce GAAP income/loss based on changes in fair value in the current period and therefore results will vary on a quarter to quarter basis. The company expects to realize returns over time on these investments of 5-7%.

Continued Evolution to More Credit Sensitive, Less Interest-Rate Sensitive Assets 7 $5,331,211 $4,290,462 $2,591,691 $128,910 $429,263 $282,527 June 2015 Agency Non-Agency RPL/NPL Securities CRT Residential Whole Loans Cash/Other $6,519,221 $4,852,137 $598,349 December 2013

Book Value Down Approximately 2% Primarily Due to Slightly Weaker Legacy Non-Agency Prices 8 Book value per common share as of 3/31/15 $ 8.13 Net income available to common shareholders 0.20 Common dividend declared during the quarter (0.20) Net change attributable to Agency MBS (0.07) Net change attributable to Non-Agency MBS and CRT securities (0.18) Net change in value of swap hedges 0.08 Book value per common share as of 6/30/15 $ 7.96

Second Quarter Non-Agency MBS Impact on MFA Book Value (1) 9 Impact Per Share Impact of change in market prices ($0.09) Realized gains from asset sales: Reallocation from OCI to Retained Earnings ($0.02) Discount Accretion: Primarily income in excess of coupon on Non-Agency MBS purchased at a discount. This income increases amortized cost and lowers unrealized gains ($0.06) Principal Paydowns $0.05 Realized Credit Losses ($0.05) Total ($0.18) (1) Does not include positive impact of swap hedges.

MFA’s Interest Rate Sensitivity Remains Below 1.0, as Measured by Net Duration 10 Assets Market Value Average Coupon Duration Non-Agency ARMs (12 months or less MTR) $2,646 2.74% 0.5 Non-Agency Hybrid (13-48 MTR) $ 416 5.02% 1.0 NPL/RPL Securities $2,592 3.60% 0.5 Non-Agency Fixed Rate $1,357 5.81% 3.0 Residential Whole Loans $ 446 4.88% 3.4 Agency ARMs (12 months or less MTR) $1,823 2.48% 0.7 Agency ARMs (12-120 MTR) $1,533 3.15% 1.9 Agency 15 Year Fixed Rate $1,975 3.10% 3.5 Cash, Cash Equivalents & Principal Receivable $ 288 0.0 TOTAL ASSETS $13,075 1.51 Hedging Instruments Notional Amount Duration Swaps (Less than 3 years) $550 -1.7 Swaps (3-10 years) $2,500 -4.4 TOTAL HEDGES $3,050 -3.9 Net Duration 0.61

FHLB Membership 11 In July 2015, MFA’s wholly-owned subsidiary, MFA Insurance, Inc., located in Salt Lake City, UT, became a member of the Federal Home Loan Bank of Des Moines. MFA Insurance owns membership stock in the FHLB DM and shares in the risks and benefits of this relationship. MFA’s residential investment strategy is consistent with and furthers the core mission of the FHLB system of supporting housing finance.

Increased Holdings of RPL/NPL MBS in the Second Quarter 12 Short Duration Deal structures generally contain a coupon step-up of 300 basis points at 36 months or sooner. Issuer can call bonds after 12 months. We expect that the securities will be redeemed prior to the step-up date. Low Credit Risk Average credit enhancement (CE) for the portfolio is 49% of unpaid principal balance (UPB) as of June 30, 2015. Subordinate bonds receive no principal or interest until senior bonds have been paid off. $603 3.69% 22 45% 40% 28.7% $1,989 3.58% 29 50% 49% 28.5% $2,592 3.60% 27 49% 47% 28.6% Fair Value $Millions Net Coupon Months to Step-Up Current Credit Support Original Credit Support 3 Month Average Bond CPR Re-Performing MBS Non-Performing MBS Total RPL/NPL MBS

LTV Breakdown of Non-Delinquent Mortgage Loans Underlying MFA’s Legacy Non-Agency MBS 13 These loans are up to date on all required mortgage payments. Underlying loans are nine years seasoned on average. Source: CoreLogic Data as of June 30, 2015 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 <= 60% 61-80% 81-90% 91-100% 101-110% 111-125% > 125% $ In Millions LTV

14 Credit Reserve of $847 Million on a Current Face of $4.81 Billion Future estimated losses are due to: Realized losses from liquidations of defaulted loans. Principal losses from the use of principal to pay interest on fixed rate bonds collateralized by loans receiving rate reduction modifications. As of June 30, 2015, there have been approximately $47 million of unrealized principal losses on such fixed rate bonds (approximately $31 million as of June 30, 2014). As of June 30, 2015, 14% of the underlying loans within our Legacy Non-Agency MBS portfolio are 60+ days delinquent. For income recognition, we estimate that 23% of the underlying loans will eventually default. In the second quarter, $5.5 million was transferred from credit reserve to accretable discount bringing the total transfer from credit reserve to accretable discount to $27.8 million in 2015. $163.9 $164.1 $90.3 $41.2 0 25 50 75 100 125 150 175 2012 2013 2014 2015 Principal Write-down ($ in Millions) Annual Through June

Credit Sensitive Residential Whole Loans 15 Utilizes the same residential mortgage credit expertise we have employed in Legacy Non-Agency MBS since 2008 Significant expected future supply Ability to oversee servicing decisions (loan modifications, short sales, etc.) to produce better NPV outcomes Residential whole loans that are fully secured by real estate are qualifying interests for purposes of REIT qualification and 1940 Act exemption Emphasizes credit sensitivity vs interest rate sensitivity Low prepayment risk: purchased at discounts and credit impaired borrowers Book value and earnings are more tied to credit performance than to interest rates

Credit Sensitive Residential Whole Loans: Growing Asset Class for MFA 16 At today’s market prices, re-performing and non-performing residential mortgage loans generate higher yields than residential mortgage-backed securities. MFA has opportunistically acquired over 2,940 whole loans -- across 15 transactions with 13 different counterparties -- at a weighted average purchase price of 77.4% of UPB. As of June 30, 2015, MFA held $429.3 million of loans: $245.4 million of primarily re-performing loans at purchase, held at carrying value $183.9 million of primarily non-performing loans at purchase, held at fair value MFA has obtained financing of $131.9 million in a repurchase agreement. MFA actively manages its loan portfolio through in-house asset management professionals and utilizes third-party special servicers.

Summary 17 We continue to utilize our expertise to identify and acquire attractive credit sensitive residential mortgage assets. We have substantially grown our holdings of RPL/NPL securities and loans in the last 12 months. Our credit sensitive assets continue to perform well. Future Federal Reserve decisions on monetary policy will remain dependent on incoming data. MFA is well positioned for changes in monetary policy and/or interest rates.