Ellington Financial's net income dropped significantly to $16.2 million in Q3 2024, yet Longbridge's proprietary reverse mortgage products continue to perform well, showcasing resilience despite overall challenges.
The net loss attributed to Longbridge in Q3 was largely due to net losses on interest rate hedges, but positive results in originations helped partially offset these declines.
Longbridge's proprietary programs have contributed positively to Ellington's adjusted distributable earnings, indicating strong performance in their specialized reverse mortgage products compared to conventional HECM offerings.
Wider HMBS yield spreads have negatively affected the company's mortgage servicing rights, leading to declines in HECM origination margins; however, fine-tuning in proprietary originations displayed positive outcomes.
#ellington-financial #longbridge-financial #reverse-mortgages #financial-performance #q3-2024-earnings
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