DBRS Morningstar Confirms Ranking on Longbridge Financial, LLC

DBRS, Inc. (DBRS Morningstar) confirmed the MOR RVO2 residential reverse mortgage originator ranking for Longbridge Financial, LLC (Longbridge or the Company). The trend on the ranking remains Stable.

The ranking confirmation reflects the following:
-- A stable senior management team with no turnover since the initial operational risk assessment (ORA) announced on February 17, 2021.
-- Strong year-over-year financial performance, boosted by the heightened demand for reverse mortgages.
-- The Company’s continued growth in originations volume and applicable increase in the number of underwriters to manage the additional volume.
-- The implementation of a second loan origination system that adds functionality to help Longbridge better support its origination channels.
-- The ongoing emphasis on training reflected by the doubling of the training team since the initial ORA.

CORONAVIRUS DISEASE (COVID-19) IMPACT
Longbridge continues to operate under its business continuity plan and has paused plans to return to the office as it monitors the status of the coronavirus Delta variant. The Company transitioned to a work-from-home environment with only a limited number of essential employees working from the office under specific policies that address working in the office.

All rankings are subject to surveillance, which could result in rankings being raised, lowered, placed under review, confirmed, or discontinued by DBRS Morningstar.

DBRS Morningstar North American reverse mortgage originator rankings are not credit ratings. Instead, they are designed to evaluate the quality of the parties that originate reverse mortgage loans. Although the originator’s financial condition contributes to the applicable ranking, its relative importance is such that an originator’s ranking should never be considered as a proxy of its creditworthiness.

Notes:
The principal methodology is the U.S. Residential Mortgage Originator Rankings methodology (August 28, 2020), which can be found on dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

The ranked entity or its related entities did participate in the ranking process for this rating action. DBRS Morningstar had access to relevant internal documents of the ranked entity or its related entities in connection with this ranking action.

For more information on this ranking or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA
Tel. +1 212 806-3277