Ellington Financial Inc. Completes $417 Million Non-QM Loan Securitization

Rhea-AI Summary

Ellington Financial Inc. (NYSE: EFC) announced the successful closure of a $417 million securitization backed by non-qualified residential mortgage (non-QM) loans, primarily acquired from LendSure Mortgage Corp. The securitization's senior tranche achieved AAA ratings from Fitch and KBRA. To comply with credit risk retention rules, the Company retained certain tranches and holds the option to call the securitization post-redemption date. This move reflects Ellington's strategy to enhance its investment portfolio in diverse financial assets.

Positive

• Closed a $417 million securitization, enhancing liquidity.
• Senior tranche received AAA ratings from Fitch and KBRA.

Negative

• None.

OLD GREENWICH, Conn.--(BUSINESS WIRE)-- Ellington Financial Inc. (NYSE: EFC) (the "Company") announced today that it has closed a $417 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., 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, 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/20220120005620/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 recent securitization did Ellington Financial announce?

Ellington Financial announced the closure of a $417 million securitization backed by non-qualified residential mortgage loans.

What rating did the senior tranche of the securitization receive?

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

When was the securitization announced?

The securitization was announced today.

Which company did Ellington Financial acquire the loans from?

Ellington Financial acquired the majority of the non-QM loans from LendSure Mortgage Corp.

What is the stock symbol for Ellington Financial?

The stock symbol for Ellington Financial is NYSE: EFC.