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 continuer脿 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 propriet脿 di alcune tranche per conformarsi alle normative sulla retenzione del rischio di credito.
Ellington Financial Inc. (NYSE: EFC) ha completado con 茅xito una securitizaci贸n de 243 millones de d贸lares respaldada por pr茅stamos hipotecarios inversos propios. Los pr茅stamos fueron originados por Longbridge Financial, una subsidiaria de propiedad total de EFC, que continuar谩 prestando servicios a los pr茅stamos hipotecarios subyacentes. Las tranches de deuda de la securitizaci贸n 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 retenci贸n de riesgo de cr茅dito.
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Ellington Financial Inc. (NYSE: EFC) a r茅ussi 脿 finaliser une titularisation de 243 millions de dollars soutenue par des pr锚ts hypoth茅caires invers茅s propri茅taires. Les pr锚ts ont 茅t茅 origin茅s par Longbridge Financial, une filiale 脿 part enti猫re d'EFC, qui continuera 脿 g茅rer les pr锚ts hypoth茅caires sous-jacents. Les tranches de dette de la titularisation ont re莽u des notations de Morningstar DBRS, les tranches seniors atteignant des notations de AAA(sf). EFC a conserv茅 la propri茅t茅 de certaines tranches afin de se conformer aux r茅glementations sur la conservation du risque de cr茅dit.
Ellington Financial Inc. (NYSE: EFC) hat erfolgreich eine Verbriefung 眉ber 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 f眉r die Verwaltung der zugrunde liegenden Hypothekendarlehen zust盲ndig 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
This
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 (鈥淗ECMs鈥�). 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?
Who originated the loans in EFC's recent reverse mortgage securitization?
What rating did the senior tranches of EFC's reverse mortgage securitization receive?
Will Longbridge Financial continue servicing the loans in EFC's new securitization?
