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Press release from PR Newswire

MFA Financial, Inc. Finances $488.4 Million of its Non-Agency RMBS

Thursday, February 17, 2011

MFA Financial, Inc. Finances $488.4 Million of its Non-Agency RMBS16:15 EST Thursday, February 17, 2011NEW YORK, Feb. 17, 2011 /PRNewswire/ -- MFA Financial, Inc. (NYSE: MFA) announced today that as part of a re-securitization transaction led by Credit Suisse and completed on February 17, 2011 it sold an aggregate of $1.32 billion in principal value of Non-Agency residential mortgage-backed securities ("RMBS") to Credit Suisse First Boston Mortgage Securities Corp.  In connection with this transaction, third-party investors purchased $488.4 million face amount of variable rate, super senior bonds (the "Senior Bonds") rated "AAA" by DBRS, Inc. issued by CSMC Series 2011-1R (the "Trust"). The Senior Bonds have a weighted average life of 2.0 years at a CPR of 10% and a pass-through rate of one-month LIBOR + 100 basis points.  MFA anticipates that the Trust will be consolidated for financial reporting purposes and, as a result, views this structured transaction as effectively financing the underlying RMBS at an attractive rate.In connection with this transaction, MFA acquired $831.6 million face amount of three classes of non-rated senior support certificates issued by the Trust, which together provide credit support to the Senior Bonds, and received $488.4 million in cash.  MFA expects to finance these bonds using repurchase agreements.  In connection with this transaction, MFA also acquired $488.4 million notional amount of non-rated interest only senior certificates issued by the Trust.  MFA is a real estate investment trust primarily engaged in the business of investment, on a leveraged basis, in Agency and Non-Agency residential mortgage-backed securities.This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities issued by the Trust in any jurisdiction in which such an offer or sale would be unlawful.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 "view," "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; MFA's ability to borrow to finance its assets; implementation of or changes in government regulations or programs affecting MFA's business; 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; 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 SEC, 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.CONTACT:  MFA Investor Relations SOURCE MFA Financial, Inc.For further information: MFA Investor Relations, 800-892-7547