This letter proposes a new iterative deflation algorithm to solve the blind source-factor separation for the outputs of multiple-input-multiple-output finite-impulse response (MIMO-FIR) channels driven by source signals that are temporally correlated but spatially uncorrelated. Using the proposed algorithm, filtered versions of the source signals, each of which is the contribution of each source signal to the outputs of MIMO-FIR channels, are extracted one by one from the mixtures of source signals.