Longbridge Financial is set to be acquired by Ellington Financial. The transaction is anticipated to close in the second quarter of 2022, subject to customary closing conditions, including regulatory approvals.
Ellington Financial, which already has an equity interest in Longbridge, will acquire an additional 49.6% ownership interest from Home Point Capital, which will effectively give them substantially all of the equity in Longbridge.
Building on its eight-year operating history with Ellington Financial, Longbridge will continue to leverage Ellington Financial’s data analysis and modeling capabilities, securitization and capital markets expertise, and permanent capital base. The transaction will also solidify Ellington Financial’s foothold in the reverse mortgage market, while continuing the growth of Ellington Financial’s loan origination businesses and further diversifying its earnings stream.
Chris Mayer, Chief Executive Officer of Longbridge, said, “We are incredibly excited that Ellington Financial has increased its commitment to Longbridge – a testament not only to the growth and strength of our company, but also to the opportunities ahead in the reverse mortgage industry. With ever-rising home prices, reverse mortgages enable the growing population of senior homeowners, many of whom are struggling with higher debt payments and inflating expenses, to gain access to their more than $10.2 trillion of home equity. Ellington Financial’s strategic and financial support, coupled with their deep understanding of the industry and capital markets, has helped Longbridge advance from a start-up to the fastest-growing major reverse mortgage lender in the space today. Following this transaction, we will work even closer with the Ellington Financial team to capture additional market share and bring innovative, compliant, and cost-effective products and solutions to our clients and partners while opportunistically executing on strategic initiatives.”