Ellington Financial Inc. Completes $346 Million Non-QM Loan Securitization

Rhea-AI Summary

Ellington Financial Inc. (NYSE: EFC) has successfully closed a $346 million securitization backed by non-qualified residential mortgage loans. The Company acquired these loans from LendSure Mortgage Corp. and American Heritage Lending, LLC, in which it holds strategic equity investments. The securitization received AAA ratings for the senior tranche from Fitch and KBRA. Ellington retained certain tranches to comply with credit risk retention rules and has the option to call the securitization post-optional redemption date.

Positive

• Successfully closed a $346 million securitization.
• Senior tranche rated AAA by Fitch and KBRA.
• Strategic equity investments in LendSure Mortgage Corp. and American Heritage Lending.

Negative

• None.

OLD GREENWICH, Conn.--(BUSINESS WIRE)-- Ellington Financial Inc. (NYSE: EFC) (the "Company") announced today that it has closed a $346 million securitization backed by a pool of non-qualified residential mortgage (“non-QM”) loans. The Company originally acquired the majority of the non-QM loans from LendSure Mortgage Corp. and American Heritage Lending, LLC, two mortgage originators in which the Company holds strategic equity investments.

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, 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.

About American Heritage Lending, LLC

American Heritage is a privately held mortgage originator that originates loans through retail and wholesale channels nationally. American Heritage is led by an accomplished management team with extensive experience in the residential lending space. American Heritage was founded in 2008 and is headquartered in Irvine, CA.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005684/en/

Investors:

Ellington Financial Inc.

Investor Relations

(203) 409-3575

info@ellingtonfinancial.com

or

Media:

Amanda Shpiner/Sara Widmann

Gasthalter & Co.

for Ellington Financial

(212) 257-4170

Ellington@gasthalter.com

Source: Ellington Financial Inc.

FAQ

What does Ellington Financial Inc. (EFC) do?

Ellington Financial invests in a variety of financial assets including residential and commercial mortgage loans, mortgage-backed securities, and equity investments.

What was the amount of the recent securitization by Ellington Financial?

Ellington Financial closed a $346 million securitization backed by non-qualified residential mortgage loans.

Who are the mortgage originators involved in Ellington Financial's securitization?

The securitization involves loans acquired from LendSure Mortgage Corp. and American Heritage Lending, LLC.

What ratings did the securitization received from Fitch and KBRA?

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

What options does Ellington Financial have regarding the securitization?

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