Ellington Financial Inc. Completes $219.7 Million Non-QM Loan Securitization
Ellington Financial (NYSE: EFC) has successfully closed a $219.7 million securitization backed by non-qualified residential mortgage loans, primarily acquired from LendSure Mortgage Corp. This marks the company’s second securitization of the year. CFO JR Herlihy praised LendSure's recovery in loan production and highlighted its excellent loan performance as crucial for Ellington's earnings. The securitization's senior tranche received AAA ratings from Fitch and KBRA, while the company retained certain tranches to comply with credit risk retention rules.
- Successful closure of $219.7 million securitization.
- Strong performance of non-QM loans from LendSure, driving earnings growth.
- AAA ratings for the senior tranche from Fitch and KBRA.
- None.
OLD GREENWICH, Conn.--(BUSINESS WIRE)--Ellington Financial Inc. (NYSE: EFC) (the "Company") announced today that it has closed a
“I am very pleased with the execution of this securitization of non-QM loans, our second this year,” said JR Herlihy, Chief Financial Officer of the Company. “Following the challenges of the spring, LendSure has done an extraordinary job restarting its loan production, and the performance of LendSure loans continues to be excellent. The pipeline of high-quality non-QM loans from LendSure continues to be an important driver of earnings for Ellington Financial, and we look forward to continuing to grow this origination business together.”
The securitization was rated by both Fitch and KBRA, with the senior tranche receiving AAA ratings. The Company retained certain tranches of the securitization in order to comply with credit risk retention rules, and also retained the option to call the securitization at any time following the optional redemption date.
About Ellington Financial Inc.
Ellington Financial invests in a diverse array of financial assets, including residential and commercial mortgage loans, residential and commercial mortgage-backed securities, consumer loans and asset-backed securities backed by consumer loans, collateralized loan obligations, non-mortgage and mortgage-related derivatives, equity investments in loan origination companies, and other strategic investments. Ellington Financial is externally managed and advised by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.
About LendSure Mortgage Corp.
LendSure is a privately held financial services company primarily engaged in the origination of residential mortgage loans. LendSure is led by a team of seasoned mortgage professionals who have many years of experience in the mortgage industry. LendSure is currently licensed (or not required to be licensed) to originate mortgage loans in 40 states, and operates primarily on a wholesale basis. LendSure was founded in March 2015 and maintains its corporate headquarters in San Diego, CA.
