As Investors Reach For Yield, Non-Qualified Loan Offering Pushed Up

Ellington Financial’s ramping up its timeline for its first securitization of loan securities that don’t meet the Consumer Financial Protection Bureau’s “qualified mortgage” guidelines – in other words, risky subprime assets – is, in part, endemic of a market environment starved for yield. The Ellington Financial non-qualified loan offering packaging, which may not get rated, is a benchmark in a yield-starved world. Ellington Financial moves up loan package offering, amid “strong appetite” for yield with risk Originally, Ellington executives had floated the idea of offering a risky non-conforming loan package to investors in the second half of 2017, but have since…