Ellington Financial Inc. Completes $426 Million Non-QM Loan Securitization

Rhea-AI Summary

Ellington Financial Inc. (NYSE: EFC) has successfully completed a $426 million securitization backed by non-qualified residential mortgage loans. The majority of these loans were acquired from LendSure Mortgage Corp. and American Heritage Lending, LLC, in which Ellington holds equity stakes. The securitization received AAA ratings from Fitch and KBRA. Ellington retained certain tranches for regulatory compliance and maintains the right to call the securitization after the optional redemption date.

Positive

• Completed a successful $426 million securitization.
• Securitization backed by non-QM loans from strategic equity partner mortgage originators.
• 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 $426 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/20220420005930/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

FAQ

What is the recent securitization amount announced by Ellington Financial?

Ellington Financial announced a successful securitization of $426 million.

Which companies provided the loans for Ellington's latest securitization?

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

What ratings did Ellington Financial's securitization receive?

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

Is Ellington Financial able to call the securitization?

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