EXPLANATORY NOTEThis Amendment No. I have reviewed this Annual Report on Form 10-K/A of Ellington Financial Inc.;2. Accordingly,& we& express& no& such& opinion.& Actual& results& could& differ& from& those& estimates.& & & Loan& origination& expenses& are& charged& to& operations& as& incurred.& & & Servicing& advances& are& initially& recorded& at& the& original& advance& balance.& The& Company& retains& the& benefits& and& obligations& related& to& the& MSRs.& Actual& losses& are& charged& to& operations& as& incurred.& Economic& risks& include& interest& rate& risk& and& credit& risk.& There& was& no& impact& to& previously& issued& net& income& or& membersʹ& equity.& Other& receivables& represent& buyout& funds& related& to& loan& repurchases.& & & These& hypothetical& sensitivities& should& be& evaluated& with& care.& Interest& was& at& 15%& to& 18%& per& annum& and& was& due& February& 2020.& The& Company& renewed& the& tail& financing& facility& when& it& matured.& & & There& are& 942& vested& options& that& are& exercisable& at& December& 31,& 2020.& & During& the& year& ended& December& 31,& 2018,& the& Company& adopted& ASU& No.& Amounts $5 million note payable due February 2020. 5,000,000$& & & & & & & $5 million note payable due February 2020. Interest& and& principal& is& due& at& maturity. Interest is at the Prime rate plus 0.50%, with a floor rate of& 5.00%.& A cash pledge deposit of $1,250,000 is required& by& the& lender. Interest& is& at& LIBOR& plus& 2.75%. &# LHFI& is& classified& as& Level& 3& within& the& fair& value& hierarchy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
