Headquartered in Connecticut Ellington Financialthe parent company of the top ten reverse mortgage lenders and servicers Longbridge Financialannounced this week that it has completed a securitization backed by a pool of captive reverse mortgages.
The $232 million securitization closed on Thursday and was backed by a series of captive reverse mortgages, all of which were originated by Longbridge, according to Ellington. Longbridge will also continue to serve as the loan servicer, the company said.
“The debt component issued in the securitization is rated DBRS Morning Star, the most advanced part receives a AAA(sf) rating,” the company explained. “[Ellington] Certain portions of the securitization are retained under credit risk retention rules and the option to redeem the securitization at any time after the optional redemption date is retained.
Longbridge has its own set of proprietary reverse mortgage products, called “Platinum,” that offer fixed-rate changes in 27 states and the District of Columbia. Line-of-credit versions are available in 18 states and Washington, D.C., and are open to borrowers 55 and older in all but eight states, with a maximum limit of $4 million, depending on home value.
This marks the second proprietary reverse mortgage securitization the company has completed this year. In March, Ellington announced a similar $208 million securitization, also backed by Longbridge’s proprietary loan, which continues to provide services.
Ellington is scheduled to hold a second-quarter 2024 earnings call on August 7, which is expected to include details on Longbridge’s results. During a first-quarter earnings call in May, Ellington Chief Executive Laurence Penn said that while the first few months of the year faced opposite challenges, he expected things to be different in the second quarter.
“Despite rising interest rates, origination and submission volumes so far in the second quarter have far exceeded expectations, reflecting in part the additional procurement Longbridge has successfully established,” Payne said on the first-quarter earnings call. Channel. “As a result, we expect Longbridge to contribute positively to growth in the second quarter. “
In late June, DBRS Morningstar re-evaluated Longbridge and assigned it its second “good” reverse mortgage originator rating in recent years.
