"Longbridge generated net income of $16.4 million in the quarter ending Dec. 31, nearly doubling its profit of $8.6 million in the third quarter. Ellington's filing with the Securities and Exchange Commission (SEC) shows that Longbridge had a positive contribution from originations, supported by sequentially higher overall origination volumes, continued strong origination margins and net gains related to the proprietary reverse mortgage loan securitizations completed during the quarter."
"New loan origination volume rose to $529.7 million in the fourth quarter, up from $498.6 million in the third quarter. Total originations increased during the period from 2,224 to 2,492 loans, with wholesale and correspondent channels accounting for about 72% of volume and retail making up the remaining 28%."
"Proprietary reverse mortgages totaled $1.69 billion at the end of Q4 2025, up from $1.39 billion three months earlier. Unsecuritized Home Equity Conversion Mortgages (HECMs) also increased sequentially. Overall, the Longbridge segment was a key contributor to Ellington's fourth-quarter performance."
Ellington Financial reported lower fourth-quarter 2025 earnings, pressuring share prices, though adjusted results exceeded dividend payouts. The company's reverse mortgage subsidiary Longbridge delivered strong performance, nearly doubling net income to $16.4 million from $8.6 million in Q3. Longbridge benefited from increased loan originations reaching $529.7 million, up from $498.6 million, with 2,492 total loans originated. Wholesale and correspondent channels represented 72% of volume while retail comprised 28%. Proprietary reverse mortgages grew to $1.69 billion from $1.39 billion. The portfolio declined 18% sequentially to $617.2 million due to securitizations, though originations continued expanding. Longbridge's gains came from origination margins, securitization activities, servicing income, and mortgage servicing rights improvements through HMBS channels.
#reverse-mortgage-reit #longbridge-financial-performance #mortgage-originations #securitization-strategy #hecm-market
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