Ellington Financial Announces Sale of MSR Assets
Key Highlights
- ➤Ellington Financial (EFC) sells all forward MSR-related and excess servicing spread investments
- ➤MSR portfolio sold above September 30, 2026 carrying value
- ➤Transaction completes monetization of all material Arlington assets
- ➤Sale frees up more than $75 million of cash for redeployment
Expert Statements
Laurence Penn, Chief Executive Officer and President of Ellington Financial
“We were able to sell the MSR portfolio above its September 30, 2026 carrying value even though interest rates had declined significantly since quarter end.”
Laurence Penn, Chief Executive Officer and President of Ellington Financial
“This sale completed the monetization of all material assets that we acquired through the 2023 Arlington acquisition.”
Laurence Penn, Chief Executive Officer and President of Ellington Financial
“We are pleased with the significant positive earnings contribution that we realized from the Arlington assets, further demonstrating the value created by the Arlington transaction”
Laurence Penn, Chief Executive Officer and President of Ellington Financial
“While we view the MSR portfolio as a high-quality asset, at current market pricing, we believe that we can achieve more attractive returns by redeploying the capital into our core strategies.”
Laurence Penn, Chief Executive Officer and President of Ellington Financial
“The Transaction frees up more than $75 million of cash in what we believe is an attractive investment environment, further enhancing our financial flexibility to pursue these opportunities.”
Ellington Financial Inc. (NYSE: EFC) (together with its subsidiaries, the "Company") today announced that it has completed the sale of certain investments related to mortgage servicing rights ("MSRs") to an unaffiliated third party (the "Transaction").
In the Transaction, the Company sold all of its interests in entities holding the Company's forward MSR-related investments and excess servicing spread investments associated with specified forward mortgage loan portfolios. These investments were acquired in connection with the Company's acquisition of Arlington Asset Investment Corp. ("Arlington") in December 2023. The Transaction was completed pursuant to a Membership Interest Purchase Agreement dated November 6, 2026.
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