As the AMF was unable to satisfy Margin Calls, it was forced to enter into forbearance agreements with its creditors. MFA Financial Inc. has entered into a forbearance agreement with its counterparties that finance its margin call payments. The counterparties participating in the forbearance agreement represent pension liabilities totalling $4.8 billion, or 83% of the liabilities in retirement. The counterparties have agreed not to exercise any rights or remedies for 15 days in connection with their respective retirement transactions, including the sale of guarantees to enforce marginal calls. The forbearance agreement allows the entity to extend the indulgence for up to an additional 75 days, subject to the counterparty`s agreement, subject to compliance with various obligations on the part of the company. The bailout was a $500 million loan from Apollo Management and Athene of more than 11 percent, which gave the AMF the respite to negotiate an exit from the indulgence and secure financing on better terms. During the quarter, the AMF`s activity focused mainly on liabilities on the balance sheet, not on assets. In addition, MFA Financial said it sold residential mortgage assets and generated $3.5 billion in proceeds, which was used to reduce related pension obligations. The company disposed of approximately $2.9 billion in mortgage securities, including $1.4 billion worth of mortgage securities, non-central bank mortgage securities and $44.7 million in credit risk securities.
In addition, it sold $US 659.9 million in residential real estate loans and $US 136.8 million in service mortgage fees. As a result of these collective measures, MFA Financial reduced its total exposure to unpaid margin calls by approximately 43%. MFA Financial has already announced that it has suspended cash dividends for the first quarter on each of its Common Shares and Cumulative Preferred Shares of Series B by 7.50% due to financial market turbulence due to the coronavirus pandemic and continued liquidity. In light of the provisions of the third forbearance agreement limiting distributions to the company`s shareholders, MFA Financial has also decided to suspend cash dividends for the second quarter on the Series B Preferred Shares and their cumulative refundable 6.50% C variable fixed rate preferred shares. All other parties to AMF Financial`s buyout agreement have agreed to participate in the third forbearance agreement. As of May 29, the company`s total outstanding pension liabilities amounted to approximately $3.8 billion. From March 24 to April 9, the company`s total commitments under its various financing agreements increased from approximately $9.5 billion on March 20 to approximately $5.8 billion. .
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