Ellington Financial (EFC) is looking into potential opportunities to buy mortgage originators since lenders are facing lower volumes, according to Bloomberg reporter Jody Shenn in an email to readers.
It’s way too premature to describe the potential strategy of a lending unit, CEO Laurence Penn is quoted.
While Ellington explained it does not want to purchase jumbo mortgages on the whole loan secondary market, the firm is looking at buying nonperforming, reperforming loans, Mark Tecotzky, chief information officer with Ellington, told Shenn.
Ellington did not at first buy Freddie Mac risk-sharing notes last quarter, but there is going to be a lot more coming down the line, the firm said.