Ellington Financial Inc. (NYSE: EFC) (the "Company") announced today that it has closed a $259.3 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.
“We are very pleased with the execution of this securitization of non-QM loans, especially given the challenges of the past few months,” said JR Herlihy, Chief Financial Officer of the Company. “The recent market volatility has underscored the benefit of securitizations to Ellington Financial’s financing strategy, as they provide long-term, non-mark-to-market financing, and enhance our earnings. We continue to believe that the non-QM mortgage sector will be an important and growing sector of the overall mortgage market, and that Ellington Financial is well positioned to take advantage of that growth.”
The securitization was rated by both S&P 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 primarily engaged in the origination of residential mortgage loans. LendSure is led by a team of seasoned mortgage professionals who have many years of experience in the mortgage industry. LendSure is currently licensed (or not required to be licensed) to originate mortgage loans in 40 states, and operates primarily on a wholesale basis. LendSure was founded in March 2015 and maintains its corporate headquarters in San Diego, CA.
Ellington Financial Inc.