Ellington Financial closes $219.7m non-QM securitization

by Ryan Smith03 Nov 2020

Ellington Financial has announced that it has closed a $219.7 million securitization backed by a pool of non-QM loans. The company said that it acquired “the vast majority” of the loans from LendSure Mortgage Corp., a mortgage originator in which Ellington Financial holds a strategic equity investment.

“I am very pleased with the execution of this securitization of non-QM loans, our second this year,” said JR Herlihy, chief financial officer at 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.”

The securitization has been rated by both Fitch and KBRA, with the senior tranche receiving AAA ratings, the company said. Ellington Financial has retained certain tranches of the securitization in order to comply with credit risk rules. It has also retained the option to call the securitization at any time after the optional redemption date.