On the heels of the announcement that mortgage investment firm Ellington Financial will acquire leading reverse mortgage lender, Longbridge Financial – the company released its Q4 2021 earnings results.
In an earnings presentation, Ellington CEO Laurence Penn related that the company has been observing strong and growing business fundamentals in Longbridge’s operations, which was a key factor in the acquisition deal. Penn also expressed general confidence in the reverse mortgage industry, due to favorable demographics and the growing senior-held home equity in the United States.
“As you know, reverse mortgages enable seniors to convert a portion of their home equity into cash without having to make regular monthly mortgage payments, so they can be valuable retirement tools,” Penn explained. “With the baby boomer generation continuing to age, the advantages of serving such a growing demographic are obvious. And similar to other markets into which Ellington Financial has expanded, we’re not really competing with banks in the reverse mortgage space. This space is dominated by non-banks, largely for regulatory reasons.”
Penn also noted the generally positive position that Longbridge and much of the reverse mortgage industry found itself in during the earliest, most uncertain days of the COVID-19 pandemic. He added that this will only help to enhance the general outlook brought about by the ongoing economic recovery.
For more information on Ellington’s earnings call and acquisition of Longbridge Financial, read the full article in Reverse Mortgage Daily.