Ellington Financial Inc. Completes Proprietary Reverse Mortgage Loan Securitization
Ellington Financial Inc. (NYSE: EFC) has successfully completed a $243 million securitization backed by proprietary reverse mortgage loans. The loans were originated by Longbridge Financial, , a wholly-owned subsidiary of EFC, which will continue to service the underlying mortgage loans. The securitization's debt tranches received ratings from Morningstar DBRS, with the senior tranches achieving AAA(sf) ratings. EFC has maintained ownership of certain tranches to comply with credit risk retention regulations.
Ellington Financial Inc. (NYSE: EFC) ha completato con successo una securitizzazione da 243 milioni di dollari supportata da prestiti ipotecari inversi proprietari. I prestiti sono stati originati da Longbridge Financial, una filiale interamente controllata di EFC, che continuerà a gestire i prestiti ipotecari sottostanti. Le tranche di debito della securitizzazione hanno ricevuto valutazioni da Morningstar DBRS, con le tranche senior che hanno ottenuto valutazioni AAA(sf). EFC ha mantenuto la proprietà di alcune tranche per conformarsi alle normative sulla retenzione del rischio di credito.
Ellington Financial Inc. (NYSE: EFC) ha completado con éxito una securitización de 243 millones de dólares respaldada por préstamos hipotecarios inversos propios. Los préstamos fueron originados por Longbridge Financial, una subsidiaria de propiedad total de EFC, que continuará prestando servicios a los préstamos hipotecarios subyacentes. Las tranches de deuda de la securitización recibieron calificaciones de Morningstar DBRS, con las tranches senior alcanzando calificaciones de AAA(sf). EFC ha mantenido la propiedad de ciertas tranches para cumplir con las regulaciones de retención de riesgo de crédito.
Ellington Financial Inc. (NYSE: EFC)는 독자적인 역모기지 대출로 지원되는 2억4300만 달러의 증권화를 성공적으로 완료했습니다. 이 대출은 EFC의 완전 자회사인 Longbridge Financial에 의해origin 이루어졌으며, Longbridge Financial은 기본 모기지 대출을 계속 관리할 것입니다. 증권화 채무 트랜치는 Morningstar DBRS에서 평가를 받았으며, 상위 트랜치는 AAA(sf) 등급을 기록했습니다. EFC는 신용 리스크 보유 규정을 준수하기 위해 특정 트랜치를 소유하고 있습니다.
Ellington Financial Inc. (NYSE: EFC) a réussi à finaliser une titularisation de 243 millions de dollars soutenue par des prêts hypothécaires inversés propriétaires. Les prêts ont été originés par Longbridge Financial, une filiale à part entière d'EFC, qui continuera à gérer les prêts hypothécaires sous-jacents. Les tranches de dette de la titularisation ont reçu des notations de Morningstar DBRS, les tranches seniors atteignant des notations de AAA(sf). EFC a conservé la propriété de certaines tranches afin de se conformer aux réglementations sur la conservation du risque de crédit.
Ellington Financial Inc. (NYSE: EFC) hat erfolgreich eine Verbriefung über 243 Millionen Dollar abgeschlossen, die durch eigene umgekehrte Hypothekendarlehen abgesichert ist. Die Darlehen wurden von Longbridge Financial, einer hundertprozentigen Tochtergesellschaft von EFC, vergeben, die weiterhin für die Verwaltung der zugrunde liegenden Hypothekendarlehen zuständig sein wird. Die Schuldtitrats der Verbriefung erhielten Bewertungen von Morningstar DBRS, wobei die vorrangigen Trancheneine AAA(sf)-Bewertung erreichten. EFC hat den Besitz bestimmter Tranchen beibehalten, um den Vorschriften zur Risikobeibehaltung im Kreditwesen zu entsprechen.
- Completed $243 million securitization of reverse mortgage loans
- Senior tranches received AAA(sf) ratings from Morningstar DBRS
- Vertical integration through wholly-owned subsidiary Longbridge Financial
- None.
Insights
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Longbridge's dual role as originator and servicer provides EFC with enhanced control over the loan portfolio and potential fee income streams. This securitization effectively converts illiquid reverse mortgage assets into tradable securities, improving balance sheet efficiency and potentially freeing up capital for new investments. The transaction structure suggests a weighted average cost of funds that should be accretive to EFC's net interest margin.
For a company with a market cap of
The proprietary reverse mortgage securitization highlights EFC's vertical integration strategy through Longbridge Financial. Unlike HECM loans, proprietary reverse mortgages offer flexibility in loan terms and typically target higher-value properties, potentially yielding better margins. The retention of servicing rights by Longbridge ensures ongoing fee income and maintains quality control over the loan portfolio.
The timing is particularly strategic as the aging demographic trends continue to drive demand for reverse mortgage products. By securing AAA ratings on the senior tranches, EFC has optimized its funding structure in a challenging rate environment. The deal's success signals market confidence in both EFC's origination standards and the broader reverse mortgage sector.
The debt tranches issued in the securitization were rated by Morningstar DBRS, with the seniormost tranches receiving AAA(sf) ratings. Ellington Financial retained certain tranches of the securitization in compliance with credit risk retention rules.
About Ellington Financial
Ellington Financial invests in a diverse array of financial assets, including residential and commercial mortgage loans and mortgage-backed securities, reverse mortgage loans, mortgage servicing rights and related investments, consumer loans, asset-backed securities, collateralized loan obligations, non-mortgage and mortgage-related derivatives, debt and 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 Longbridge Financial
Longbridge is engaged in the business of originating, purchasing, selling and servicing home equity conversion mortgage loans (“HECMs”). Longbridge is approved as a Title II, non-supervised direct endorsement mortgagee with the
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Investor Inquiries:
Ellington Financial Inc.
Investor Relations
(203) 409-3575
info@ellingtonfinancial.com
Press & Media Relations:
Amanda Shpiner/Grace Cartwright
Gasthalter & Co.
for Ellington Financial
(212) 257-4170
Ellington@gasthalter.com
Source: Ellington Financial Inc.
FAQ
What is the size of EFC's latest reverse mortgage securitization in 2024?
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What rating did the senior tranches of EFC's reverse mortgage securitization receive?
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