MFA Mortgage Investments, Inc

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MFA Mortgage Investments, Inc is a mortgage real estate investment trust. They invest hybrid and adjustable rate mortgages (ARMs) backed securities that are issued by, or guaranteed by the Government National Mortgage Association (Ginnie Mae) or Federal Housing Loan Mortgage Association (Freddie Mac) or Fannie Mae.

MFA Mortgage Investments Hybrid Mortgage Backed Securities

MFA Mortgage Investments invests in mortgage backed securities -- pools of mortgages on a selection of single-family homes. Maybe your mortgage. They use borrowed money to buy these securities based on London InterBank Offered Rate (LIBOR). They can make money so long as the interest rate they pay to borrow money is less than the interest rate the homeowners are paying on their mortgages.

And, of course, so long as the homeowners are actually making the monthly payments on their mortgages.

MFA Mortgage's status as a REIT does give them an advantage by eliminating the income taxes they have to pay. Buying stock in this company is essentially a way for the average person to invest in mortgage-backed securities. At this point, I can't think why anybody would want to.

Next: Newcastle Investment Corporation -- commercial real estate lending

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