Major rating firm confirms second highest rank behind leading reverse mortgage lender

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Global credit rating agency DBRS Morningstar has confirmed the “good” rating previously given to reverse mortgage lender Longbridge Financial, based in Mahwah, New Jersey, reaffirming the status of reverse mortgage lender that was obtained for the first time. in early 2021. That’s according to a statement this week from DBRS Morningstar itself.

“The MOR RVO2 residential reverse mortgage originator rankings reflect Longbridge’s experienced and permanent management team, highly experienced underwriting team, financial profitability and strong loan performance,” the company said in its announcement. .

The ranking is the second highest from DBRS Morningstar, indicating that, based on the information made available, the products offered and the processes governing them in place at Longbridge are of “good” quality, according to the ranking methodology of publicly available shippers obtained by RMD. in the first run of the row by Longbridge in 2021.

A “MOR RVO1” rating would be the highest rating that DBRS Morningstar could give a reverse mortgage lender indicating a “superior” level of product management and processing, while the “MOR RVO2″ rating is above average or ” Well “. When the ranking was first announced in 2021, it was the first such ranking that DBRS Morningstar had released for a reverse mortgage lender. The ranking company also describes the ranking trend as “stable”, echoing the initial trend.

“Longbridge has been profitable since 2017 with acceptable returns,” DBRS Morningstar said. “The company has limited credit risk as it benefits from government guarantees provided by the Federal Housing Administration and Ginnie Mae on the performance of its reverse agency-backed portfolio while selling its private reverse mortgages to a third-party investor on a flow.”

When contacted for the grading assignment in 2021, Longbridge CEO Chris Mayer outlined for RMD the review process and what it originally meant for the lender.

“The ranking process involves in-depth analysis of all aspects of our organization,” Mayer told RMD in 2021. “This is the second-highest original ranking given by Morningstar. A ranking above the track record-free average from the get-go is an amazing achievement and will help us work on new proprietary products and features in the months and years to come.

Earlier this year, investment firm Ellington Financial announced plans to buy a remaining stake in Longbridge from Home Point Capital, in a deal expected to close at the end of the second quarter. Longbridge also announced a series of new appointments so far this year, including a new head of field sales and a new chief operating officer.

Read the DBRS Morningstar announcement.

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