Ellington Financial Inc. Completes $258 Million Non-QM Loan Securitization

Rhea-AI Summary

Ellington Financial Inc. (NYSE:EFC) has successfully closed a $258 million securitization backed by non-qualified residential mortgage loans. The majority of these loans were acquired from LendSure Mortgage Corp., where EFC holds a strategic equity investment. The securitization received AAA ratings for the senior tranche from both Fitch and KBRA. EFC retained certain tranches to adhere to credit risk retention rules and has the option to call back the securitization post the optional redemption date.

Positive

• Successful closing of $258 million securitization.
• Securitization backed by non-QM loans enhances asset liquidity.
• AAA ratings from Fitch and KBRA indicate high credit quality.

Negative

• None.

OLD GREENWICH, Conn.--(BUSINESS WIRE)-- Ellington Financial Inc. (NYSE:EFC) (the "Company") announced today that it has closed a $258 million securitization backed by a pool of non-qualified residential mortgage (“non-QM”) loans. The Company originally acquired the vast majority of the non-QM loans from LendSure Mortgage Corp., a mortgage originator in which the Company holds a strategic equity investment.

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 engaged in the origination of residential mortgage loans, which operates primarily on a wholesale basis. LendSure is led by a team of seasoned mortgage professionals who have many years of experience in the mortgage industry. LendSure was founded in March 2015 and maintains its corporate headquarters in San Diego, CA.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211008005028/en/

Investor:

Ellington Financial Inc.

Investor Relations

(203) 409-3575

info@ellingtonfinancial.com

or

Media:

Gasthalter & Co.

for Ellington Financial Inc.

Amanda Klein or Kevin FitzGerald

(212) 257-4170

ellington@gasthalter.com

Source: Ellington Financial

FAQ

What is the recent securitization amount by Ellington Financial (EFC)?

Ellington Financial (EFC) recently closed a securitization amounting to $258 million.

What type of loans are backed in EFC's recent securitization?

The recent securitization by Ellington Financial is backed by a pool of non-qualified residential mortgage loans.

Who did Ellington Financial acquire the majority of its loans from?

The majority of the non-QM loans were acquired from LendSure Mortgage Corp.

What ratings did the securitization receive?

The senior tranche of the securitization received AAA ratings from both Fitch and KBRA.

What options does EFC have regarding the securitization?

Ellington Financial retained the option to call the securitization at any time after the optional redemption date.