Exhibit 99.1

MFA MORTGAGE INVESTMENTS, INC. 350 Park Avenue NEW YORK, NEW YORK 10022 TELEPHONE (212) 207-6400

MFA Mortgage Investments, Inc.
Announces Third Quarter 2003 Earnings Per Share of $0.21

     MFA Mortgage Investments, Inc. (NYSE: MFA) today reported net income of $11.8 million, or $0.21 per share, for the quarter ended September 30, 2003 versus $17.3 million, or $0.37 per share, for the quarter ended September 30, 2002. As of September 30, 2003, stockholders’ equity was $462.5 million, or $7.73 per share.

     On September 10, 2003, MFA announced a third quarter 2003 common stock dividend of $0.28 per share. The third quarter dividend will be paid on October 31, 2003 to stockholders of record on September 30, 2003.

     Stewart Zimmerman, MFA’s Chairman of the Board, Chief Executive Officer and President, commented on MFA’s third quarter 2003 results, “Our fundamentals remain solid and we are well positioned for this period of economic uncertainty. Approximately 99% of our assets consist of mortgage-backed securities (“MBS”) and related receivables issued or guaranteed by an agency of the U.S. government or a federally chartered corporation, other MBS rated “AAA” by Standard & Poor’s Corporation and cash. In addition, over 99% of the MBS in our portfolio are adjustable-rate and hybrids, which have an initial fixed interest rate for five years or less and then convert to a one-year adjustable-rate for the remaining loan term. We believe that avoiding significant holdings of fixed-rate MBS reduces our exposure to interest rate risk.”

     Mr. Zimmerman continued, “We believe that both U.S. monetary and fiscal policies are and will remain accommodative to economic recovery for at least the next few quarters. We anticipate that the Federal Funds target rate (currently 1.00%) will remain at low levels until gross domestic product grows at a rate conducive to a declining unemployment rate.”

     During the third quarter, MFA’s yield on interest-earning assets was negatively impacted by high prepayment speeds in the MBS portfolio, resulting in accelerated amortization of purchase premiums. While the gross yield of MFA’s interest-earning assets was approximately 4.36%, the net yield on interest-earning assets was reduced to 2.61%, due primarily to premium amortization. The portfolio spread, the difference between MFA’s interest-earning asset portfolio yield of 2.61% and its 1.46% cost of funds, was 1.15% for the third quarter.

     Mr. Zimmerman added, “Our portfolio spread has been negatively impacted by high prepayments. Many of our assets are indexed to one-year treasury rates and, with these rates near 1.30%, we are pleased with MFA’s return on average equity for the quarter of 10.7%.”

     “The prepayment speed on MFA’s MBS portfolio averaged 41% Constant Prepayment Rate (“CPR”) during the third quarter of 2003. We do not anticipate that interest rates will decline significantly over the next few quarters and therefore expect that prepayments will trend down, as mortgage rates no longer test historic lows. We expect that fourth quarter results will reflect some of this anticipated slowdown in prepayments.”

     During the third quarter of 2003, MFA realized a net gain of $1,080,000 from the sale of two real estate investments. In addition, MFA realized a loss on sales of MBS of $599,000 in the quarter.

     MFA finances the acquisition of its MBS primarily by borrowing at short-term rates using repurchase agreements. At September 30, 2003, MFA’s debt-to-equity ratio was 8.1:1 while its assets-to-equity ratio was approximately 9.2:1. Over time, MFA expects to maintain asset-to-equity ratio of less than 11:1.

     MFA continues to invest in adjustable-rate and hybrid MBS. Due to the fact that the assets MFA owns are adjustable after their initial fixed terms, the coupon received on these assets will adjust over time as interest rates change. In measuring its assets-to-borrowings repricing gap (“Repricing Gap”), MFA measures the difference between: (a) the weighted-average months until coupon adjustment or prepayment on its adjustable-rate and hybrid MBS portfolio assuming a CPR of 15%; and (b) the months remaining on our repurchase agreements applying the same CPR assumption. The CPR is applied in order to reflect, to some extent, the prepayment characteristics of interest-earning assets and interest-bearing liabilities. As of September 30, 2003, the weighted-average time to repricing or expected prepayment for MFA’s MBS portfolio was approximately 18 months while the average term remaining on its repurchase agreements was 8 months, resulting in Repricing Gap of 10 months.

     Stockholders interested in reinvesting their dividends or purchasing stock directly from MFA may do so through the company’s Discount Waiver, Dividend Reinvestment and Stock Purchase Plan (the “Plan”) by contacting Mellon Investor Services, the company’s Plan administrator, at 1-866-249-2610 (toll free).  Interested stockholders may also go to the website established for the Plan at www.melloninvestor.com or visit the company’s website at www.mfa-reit.com. 

The Company will hold its third quarter 2003 earnings conference call on Wednesday, October 29, 2003 at 10:00 a.m. EST. The number to call is 1-888-428-4470 in the U.S. and Canada. International callers must dial (651) 291-0561. The replay will be available through Wednesday, November 5, 2003 and can be accessed by dialing (800) 475-6701 in the U.S. and Canada or (320) 365-3844 internationally and entering access code: 703743. There will be a web cast of the call on www.mfa-reit.com.

MFA MORTGAGE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

MFA MORTGAGE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS