Reverse mortgage lender Longbridge preps first non-agency MBS

Securities are backed by proprietary reverse mortgages

Reverse mortgage lender Longbridge preps first non-agency MBS

Longbridge Financial is set to issue a non-agency MBS backed by proprietary loans – a first for the reverse mortgage lender.

The MBS is sized at $229 million and has an average current unpaid principal balance of $673,882, according to a report by Insight Mortgage Finance. Subservicing will be handled by reverse specialist Celink.

Established in 2012, the New Jersey-based company originates agency-backed home equity conversion mortgages and a private reverse mortgage product, Longbridge Platinum, through its retail and wholesale channels. Longbridge, majority-owned by Ellington Financial and Homepoint, originated nearly 6,600 reverse mortgages totaling $1.2 billion last year and has a serving portfolio exceeding $4.5 billion.

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According to rating agency DBRS, the 279 loans in the MBS were closed between 2019 and 2021. DBRS assigned preliminary AAA ratings to the securities.