Craig L. Knutson
of I Powell interest your you did in the and other those AM Little I at financial MFA senate Thank me short of our the straw time results Jerome first XX have who with with for I'd Kristjansson know and our Financial’s like Also everyone. that Hal and CFO, good dialed apologize is would who and testifying today to stuck morning quarter compete senior I to are you air Investment management. our to you co-Chief in drew in Bryan Wulfsohn welcome Officers with and for members thank to XXXX Steve Yarad, Gudmundur you webcast. call.
Our morning earnings our format be call. slightly different will this from customary
as page the will But follow usual We this earnings filed webcast part by have on I page, filing website opening our an the on not deck refer we an unlike presentation, to up call to deck as I as scroll the and prepared will do. will as remarks typically presentation deck the various this pages calls, open times morning. the you our X-K earnings not deliver questions. and of earnings the at for in encourage I we
has That over the the environment by dedication. humbled I've efforts have begin, work operating the more three been I want and The entire all successfully remote the been our business of shout MFA implemented continuity been so The the by out to we risks fully challenging third remote. three by fact of displayed and address to COVID-XX during associated global our entire Before last team transitioned have made extremely week their a our extraordinary and completely months team. obviously been to a exponentially to that pandemic. with give plan company and March last effort months our commitment
these streams other I'd at like important XXrd time to activities. and balance since first efforts point party what sheet MFA place Before and of ancient we discuss frankly, of why been the March some obvious be sourcing discussing of have things; taking XXXX financial I forbearers; seems have comprised capital. will primarily like been think work management; results, it These three, so liquidity three two, been critical this quarter and many we've third which on one, at spend history, silent
chronicling are several various agreements to counter lending releases June of have the We with extends parties, forbearance in and presently forbearance XX. which our issued press plan third we
to these counterparts been and third three As versions with stuck forbearance liquidity manage of arduous to with that source as also are us through, to plans. time agreements balance provided party operate And negotiate and we have while sheet to the working us our have grateful lending through forbearance they capital. our
through liquidity were sheet able raise in forbearance During and April our a in fashion, existed mortgage to delever allowed balance and higher particularly our time forbearance. given we on judicious the reduced effort significantly of sales, because into asset price at the an backed balance prices that Many in March. securities, our manage we than importantly to were late these entered we May, levels significantly plans sheet more
assets of CRTs, related realized million over month the marks. MSR versus legacy XX non-agencies, of alone Our of April and generated March $XXX gains sales during
still lessen and permitted while We forbearance in the value mid-May. of traded us end book from through Now, enabled the erosion. home loan closed portfolio to that also in able a late were down non-QM sale at manage February, work patients the large to values significantly April of hard to
managing lenders liquidated have a the we late much just but achieved a path to It While all the controlling execution end, sale, repaid forward require would due lender with no forbearance than our of design loss had trade forms are another have the to us funding, financing. fragile fully bad of realized goals durable been we was and pool. which of In we by of was more the the clear our assets, the we confident deficiencies, the not will is realized plan. situation that better in that and the significant March the of would
financing require We therefore also non-mark-to-market term and necessarily holiday capital. margin recognize that haircuts would and/or financing higher more
March interest. indications began capital party of seeking for passively with incoming week last somewhat third during of the method fielding Our
was these sheet informational document signed to institutions, day. weekend entered we and a that began there obtain round a portfolio, more manage number over loan Memorial on a came sheet and in and from negotiating and parties negotiating transaction as proposals it of all found providers liquidity, interest our within of better as needs keen NDAs already third third of of forbearance more with Houlihan end gave clarity capital we As and party requests, the agreement we with this sought competitive with liquidity to together have for while with work but diligence responding interest April a indications raise delever and this changed. held the that forbearance and at process many at particularly calls on second of agreement price to and in intensified this evident to a agreement. negotiate our which of been we our we and discovery, forward. voluminous and that a providers had May, and to our to end March since June fire We us. mid-April capital term balance Day managing to then at our initial We engaged Lokey We data in the back party Xst more due dynamic capital and Initial pursuing our from as mid-May a as working continue us path while we process extended became hair
agreements obvious these an ourselves. provide not note we're happy Apollo and with of facility a not with it $X.XX our secured part from For solution to to and will million portion Apollo Athene, we and signed last us This notes. night a that to non for of mark-to-market transparency agreement very over announce committed Apollo loan million could an activities for have was billion a MFA of Barclays Athene term portfolio. we entered company facility be senior and million participation communicate raise arranged provide and the have $XXX a financing of term We of partnership insurance is into a But to durable that reasons affiliate together disclosure with in holistic this public Apollo Athene. borrowing Athene. we for $XXX pride strategic with publicly and only and $XXX includes about these approximately able frustrating which the on today form large
facilities, to of Pro form participate. which flip these financing for purchase company's future And XX% funding, forma in significant portfolio the downside volatility. the for finally, In loans. to of certain has with Apollo are conditions, subject addition, pricing an committed to facility another structure a non-QM will and and protection of lenders engaged first with approximately similar providing securitization in shareholders to be Athene of Athene the our fix lending our also our non-mark-to-market portion Athene event market of intends in of additional
remaining We able margin and these expect forbearance or the transactions, and only before upon exit agreement closing XXth, current we'll satisfy June calls, were of which million on $XX be that from XXth. funding June as of to
will We to And to anticipate expect issues. pay finally, preferred this the we and our attractive to using with pursue of opportunities. also us unpaid dividends capital investment C stock begin accumulated proceeds substantial provide some Series B that once on transaction again
$XX purchase Athene of committed and warrants a over prices Athene five of observer of the the million will MFA to to and in XX our X.X% MFA a and non-voting common next this Apollo receive Board period Apollo months. of over part or open varying stock appoint transaction, lesser at the also As we'll year purchase to Directors. stock market have
much are specific to are than filed the a very an and X-K we morning. which transaction, that Details in excited this a about of capital the more much this raise alliance. credit strategic We agreement be of extremely provided terms consider we
to XXXX. the on first the of financial for results quarter Moving
of for normal days, XXXX and utterly in distinct January, to completely a first market the literally us, have very in few time. were collapsed. particular And financial the of the different tale the New others March two the periods As only start and in first of two quarter and Year. weeks a February a good markets mortgage described and was
a dropped few to XXth million of to and XX points, assets had March points calls prices entire during $X Xnd liquidity the these portfolios all to March on evaporated. In extreme and received suddenly we not XX factor points. for XX were the January, mortgage And days. as the Xth. pandemic the almost non-agencies, dislocations a MFA in With than week calls, XX changed Securities during by more last and of XX $XX on margin $XXX million much mortgage months Prices the points of securities. to and contrast, received in with XX related pricing CRT the Cold MSR the March million X was calls were margin over during three by related lower markets received were $XXX total changes of so total which we in week years, onset legacy million two as of of by margin X million. of during February March weeks of December, $X XXrd residential a asset that all of these amount and aggregate backed and of lower
three During received meaning months calls those due totaling our million, from XX increases. more lenders XX XX same net reverse we to we price million initiated margin
XXth, week met that While, financing on announced dearth XXrd we discussions March counterparties. forbearance we of initiated we not our that difficult. with margin began had We this liquidity March and selling of on made assets had during XXth the calls March the
liquidity to began we negotiations these raise leverage. assets sell to we and As continued reduce
unrealized Book by share. affected value and decreased provisions these losses a together adjustments loss quarter resulted standard, with would provide X again provide and held for spend fair detail will first $XXX Steve funding $X.XX sale share the profoundly per losses the since Our new as the activity additional were designated realized $X.XX XXst. of some March on in some economic and book under CECL now what Page from losses, some the loans envision and at X the credit financial available perspective at losses, value, and $X.XX per to earnings like to changes I of on accounted shows March valuation share. to the then balance and question-and-answer information results Athene discussing May the portfolio the section March of assets Yarad for impairment for on Page of per first value March discuss sheet of Apollo earnings to XXst million December transactions on deck XXst and from results XX. during or presentation to Page items, presentation decreased from be of forbearance. quarter XXst from beginning we the time of XXst XXst to after exit session. financial
in not As growth and the a portfolio mortgage three all our substantially $X.X been charts, securities and but way all sell approximately whole two This securities should you has surprise we to the can easier see whereas both whole acquisitions occur, from in more the new securities loans. have defined on almost and improvement backed changes and slower admittedly up. liquid there's XX% are our billion pie on years in therefore the pricing pricing of portfolio through back sold to loans. Mortgage backed way to April down less as we of were last and May our were over and saw be loan
to securities regulatory on is certain market issues. it non-mark-to- difficult importantly, loans More due it mortgage backed financing more on to get than is
fair more XXX XXX assets than our arrangements. to durable of or billion, of $XXX at and single XXX and So fix flip loan whole and purchase the REL estate easy. loans today family We million, non-QM real rough season numbers is are credit relatively comprised loans conducive of loans million, million, portfolio performing of X.X million. or million, view lead financing attractive decision more X.X billion, loans In more value securities loans performing generally rental was loans loans loans, XXX as impaired
line we a portfolio. Looking mentioned X.XX significant over securitizations such on and term, portfolio billion forward, Athene portion Flip we our committed non-mark-to-market committed financing working similar of will million, have a as existing of billion we for And securitization including another and with dealer our Fix XXX will finance approximately X with in this of financing. previously, a are through
slowly swaps will to the out of wide But to through widened early loans, spreads non-QM continue now levels. in securitization, mid-XXXs XXX depth as the XXX to We are and pursue the over March been plus tighter crisis. for as that's particularly AAA securities, they've from XXX area back grinding at
accumulated closing that Series C to declare expect and We B issues. our the the following be of able Series these transactions, and pay stock funding and we will on dividends preferred
agreement paying dividends are previously have including will be a prohibited forbearance payments no on disclosed we Once As the stock preferred prohibited stock. the the preferred common dividends interests, current, from longer of terms any we equity of dividend.
dividend the determine of forward. on stock, common will As the far as MFAs going dividend our Board policy Directors
we this filing with facts per REIT on the One, are to to share. income required undistributed excise framing to approximately end tax XXXX in dividends, first will required of I While expected ordinary In declare estimated clearly X% of forward to order amount, avoid dividend gains. Two, will which this paying estimated XXXX generated avoid of corporate losses the REIT is capital assets income. are taxable of paying dividends And income and tax a taxable not REIT we from given purposes residential against to quarter the prior date from for do provide of share $X.XX to year. Board. the pay XXXX October to we have to our REIT at $X.XX offset dividend share. XXXX sales or least several income do pertinent in year taxable of XXXX mortgage In in this order XXXX tax be guidance for as per and a are future consideration in capital that future return, such XX% the presently before dividend we carry we income income our declare discussions tax of three,
ordinary capital not taxable do these However, income. REIT losses offset
excise loan March brief million, which loans, Other XXXX, estimated any XXst, $X.XX primarily economic updates, is avoid to the determining the carrying to versus flat quarter XXth was will the While tax. forecast and our XXst, generated value May value book we marks the be of income ordinary X% appreciation we X% in threshold in cash have for lower taxable X% added June such value have than approximately because for the first $XXX necessary GAAP seen book as in value to April while unrestricted estimated March May in by April is book some value, marks were carrying This be below May, is balance at to March value loan increased economic from are to difference XXst. is open the for cannot This up what REIT income concludes marks you the those my lines of to book and questions. for still please book the economic the marks. prepared remarks. Stacy, value GAAP between March would determines versus
