On the non-QM side, the company’s credit strategy, which includes non-QM loans, generated $68 million in net income.
Penn noted in Ellington’s Q2 financial report that “tight yield spreads in our April securitization helped generate a significant gain in our portfolio, and where continued strong loan demand improved industrywide gain-on-sale margins and origination volumes, driving excellent results at our affiliate loan originators.”
Longbridge, Ellington’s reverse mortgage business, generated $4.2 million in earnings, driven by the strong performance of its proprietary reverse mortgage loans. The company successfully completed its second securitization of Longbridge-originated reverse mortgages after the quarter ended, achieving “incrementally stronger execution” than its inaugural deal.
In addition to the non-QM and reverse mortgage segments, Ellington also cited the residential transition and commercial mortgage loan strategies, as well as non-agency RMBS, as contributing to its profits.
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