Ellington Financial Inc. Completes $267.3 Million Non-QM Loan Securitization

Ellington Financial Inc. (NYSE: EFC) (the "Company") announced today that it closed a $267.3 million securitization backed by a pool of non-qualified residential mortgage (non-QM) loans.

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Business Wire, Inc.
Retrieved on: 
Monday, November 18, 2019
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Professional services, Other Construction & Property, Residential Building & Real Estate, Commercial Building & Real Estate, Finance, Construction & Property, Finance, Money, Financial markets, Structured finance, United States housing bubble, Financial law, Mortgage, Mortgage-backed security, Securitization, Asset-backed security, Mortgage loan, Commercial mortgage-backed security, Ellington Financial Inc., LendSure Mortgage Corp.
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Connecticut, United States
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ELLINGTON FINANCIAL INC., LENDSURE MORTGAGE CORP.
Summary
Key Points: 
  • Ellington Financial Inc. (NYSE: EFC) (the "Company") announced today that it closed a $267.3 million securitization backed by a pool of non-qualified residential mortgage (non-QM) loans.
  • We are pleased with the execution of our second securitization of non-QM loans of 2019, and with the steady growth of LendSure, said JR Herlihy, Chief Financial Officer of the Company.
  • 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.


Ellington Financial Inc. (NYSE: EFC) (the "Company") announced today that it closed a $267.3 million securitization backed by a pool of non-qualified residential mortgage (“non-QM”) loans. The Company originally acquired the non-QM loans from LendSure Mortgage Corp., a mortgage originator in which the Company holds a strategic equity investment.

“We are pleased with the execution of our second securitization of non-QM loans of 2019, and with the steady growth of LendSure,” said JR Herlihy, Chief Financial Officer of the Company. “Securitizations are an important component of Ellington Financial’s financing strategy, as they provide long-term, non-mark-to-market financing, and enhance our earnings. The performance of LendSure’s loan production has been excellent, and we look forward to continued success together.”

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 37 states, and operates primarily on a wholesale basis. LendSure was founded in March 2015 and maintains its corporate headquarters in San Diego, CA.

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