Ellington Financial Inc. Completes $331.8 Million Non-QM Loan Securitization

Rhea-AI Summary

Ellington Financial announced the closing of a $331.8 million securitization backed by non-qualified residential mortgage loans. The majority of these loans were acquired from LendSure Mortgage Corp., in which Ellington has a strategic equity investment. The securitization received AAA ratings for the senior tranche from both Fitch and KBRA. The company retained certain tranches to comply with credit risk retention rules and has the option to call the securitization after the optional redemption date.

Positive

• Closed a significant $331.8 million securitization.
• Senior tranche received AAA ratings from Fitch and KBRA.
• Retained certain tranches for credit risk retention compliance.

Negative

• None.

Ellington Financial Inc. (NYSE: EFC) (the "Company") announced today that it has closed a $331.8 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/20210614005247/en/

FAQ

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

Ellington Financial closed a $331.8 million securitization.

Which company originated the non-QM loans for Ellington Financial?

The non-QM loans were primarily acquired from LendSure Mortgage Corp.

What rating did the senior tranche of the securitization receive?

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

Does Ellington Financial have an option to call the securitization?

Yes, Ellington has the option to call the securitization after the optional redemption date.