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Ellington Financial Inc. (EFI) said Wednesday it has closed a $426 million securitization backed by a pool of non-qualified residential mortgage, or non-QM, loans.
The company originally acquired the majority of the non-QM loans from LendSure Mortgage Corp. and American Heritage Lending, LLC, two mortgage originators in which EFI holds strategic equity investments.
The securitization was rated by both Fitch and KBRA, with the senior tranche receiving AAA ratings, EFI said. 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.
EFI 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. The company is externally managed and advised by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.
LendSure is a privately held financial services company engaged in originating residential mortgage loans, primarily on a wholesale basis.Founded in March 2015, LendSure is based in San Diego.
American Heritage is a privately held mortgage originator that lends through retail and wholesale channels nationwide. Founded in 2008, it is headquartered in Irvine, Calif.