Ellington Financial Inc. Closes $219M Non-QM Loan Securitization

Ellington Financial Inc. Closes $219M Non-QM Loan Securitization

November 2, 2020
Empty board room.

Ellington Financial Inc. closed a $219.7 million securitization that was backed by a pool of non-qualified residential mortgage loans. The vast majority of the Non-QM loans were acquired from LendSure Mortgage Corp.

"I am very pleased with the execution of this securitization of non-QM loans, our second this year," said JR Herlihy, chief financial officer of Ellington Financial. "Following the challenges of the spring, LendSure has done an extraordinary job restarting its loan production, and the performance of LendSure loans continues to be excellent. The pipeline of high-quality non-QM loans from LendSure continues to be an important driver of earnings for Ellington Financial, and we look forward to continuing to grow this origination business together."

According to a press release, the securitization was rated by Fitch and KBRA with the senior tranche receiving AAA ratings. Additionally, Ellington Financial retained a certain portion of the securitization in order to maintain its compliance with credit risk retention rules. It also retained the option to call the securitization at any time following the optional redemption date, according to the release. 

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