Investor Contact: MFA Investor Relations 212-207-6488 www.mfafinancial.com Since the date of this announcement until April 9, 2020, the Company`s debt under these agreements has fallen to approximately $5.8 billion. This decrease is due to the sale of certain assets and the repayment of related pension obligations. The Company has engaged Hunton Andrews Kurth LLP and Quinn Emanuel Urquhart & Sullivan, LLP as legal advisors and FTI LLC as financial advisors in connection with its financings and related matters. When used in this report or in other written or oral communications, statements that are not historical in nature, including those that contain words such as “will,” “believes,” “expects,” “anticipates,” “estimates,” “plans,” “continues,” “intends,” “should,” “could,” “could,” “may” or similar expressions, are intended to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. and, as such, may involve known and unknown risks, uncertainties and assumptions. Statements regarding the following matters may include, but are not limited to, forward-looking statements: the Company`s estimates of its outstanding loans under its financing agreements, the uncertainties associated with negotiations with the Company`s financing counterparties, including with respect to a forbearance agreement and the timing of such agreement or its terms, and other financial and operational measures contained herein. Forward-looking statements are based on estimates, projections, beliefs and assumptions made by the Company`s management at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in forecasting future results and conditions. Additional information about these and other risk factors is contained in the Company`s filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings.

All information in this press release is as of April 10, 2020. The Company assumes no obligation to update any forward-looking statements to reflect changes in its expectations or changes in the events, conditions or circumstances on which such statements are based. During the period covered by the third forbearance agreement, the Company intends to continue to examine other potential transactions in order to further reduce its obligations under its existing repurchase agreements, raise funds that are generally more sustainable than existing funding alternatives, and raise funds to strengthen its liquidity. In addition, the Corporation will continue to engage with its counterparties as necessary to obtain greater leniency. While a mortgage forbearance agreement offers short-term relief to borrowers, a loan change agreement is a permanent solution for prohibitive monthly payments. In the event of a loan change, the lender can work with the borrower to do a few things – e.B. Lower the interest rate, switch from a variable interest rate to a fixed interest rate, or extend the term of the loan – to reduce the borrower`s monthly payments. A mortgage forbearance contract is not a long-term solution for defaulting borrowers. Rather, it is intended for borrowers who have temporary financial problems caused by unforeseen problems such as temporary unemployment or health problems. Borrowers with more fundamental financial problems – like. B choose a variable rate mortgage where the interest rate has been reset to a level that makes monthly payments prohibitive – usually have to look for other remedies. In addition, MFA Financial said it sold residential mortgage assets and raised $3.5 billion in proceeds, which were used to reduce associated repurchase obligations.

The company sold approximately $2.9 billion in residential mortgage securities, including $1.4 billion in agency mortgage-backed securities, $1.3 billion in non-urgent mortgage-backed securities and $44.7 million in securities for credit risk transfer. In addition, it sold $659.9 million in residential loans and $136.8 million in mortgage service fee assets. Through these class actions, MFA Financial has reduced its overall risk of unpaid margin calls by approximately 43%. In light of the events and conditions described above, the Company is in discussions with its financial counterparties to enter into forbearance agreements under which each counterparty would agree not to exercise its rights and remedies in the event of default under the applicable financing agreement for an agreed period. The Company cannot predict whether its financial counterparties will enter into a forbearance agreement, the timing of such an agreement or its terms. A mortgage forbearance agreement is entered into when a borrower has difficulty making payments. With the agreement, the lender agrees to reduce or even suspend mortgage payments for a certain period of time. They also agree not to initiate enforcement during the period of abstention. MFA Financial Enters into Forbearance Agreement regarding Margin Appeals From March 24 to April 9, the Company`s total commitments under its various financing agreements increased from approximately $9.5 billion as at March 20 to approximately $5.8 billion. This decrease is due to the sale of certain assets and the repayment of related contractual obligations related to pension contracts. Dividend update. As previously announced by the Company, due to financial market turbulence resulting from the global COVID-19 virus pandemic and in order to maintain liquidity, the Company has suspended its quarterly cash dividends for the first quarter of 2020 on each of its common shares and on 7.50% of cumulative redeemable Preferred Shares of Series B (the “Series B Preferred Shares”).

In light of the foregoing, as well as the provisions of the Third Forbearance Agreement that limit distributions to the Company`s shareholders, the Company has also decided to suspend its quarterly cash dividend for the second quarter of 2020 on the Series B Preferred Shares and its 6.50% Series C Series C Cumulative Variable Rate Fixed Rate Redeemable Preferred Shares (the “Series C Preferred Shares”). Unpaid dividends on the Company`s Series B and Series C Preferred Shares will accrue without interest. No dividend may be paid or offset on the Company`s common shares unless all cumulative dividends on the Series B Preferred Shares and Series C Preferred Shares for all past dividend periods that have expired have been or are paid simultaneously in cash or a sufficient amount for such payment is determined for payment. . . .