Fitch issues final ratings on $300m non-QM securitization

by Ryan Smith28 Jul 2020

Fitch Ratings has assigned final ratings to residential mortgage-backed certificates issues by Angel Oak Mortgage Trust, assigning the securitization’s top tier a AAA rating.

The securitization, designated AOMT 2020-4, includes 734 loans with a balance of $300.39 million. The securitization consists mainly of non-QM mortgages (80.4%). All of the loans were originated by Angel Oak entities, including Angel Oak Mortgage Solutions, Angel Oak Home Loans, and Angel Oak Prime Bridge. This is the 10th Fitch-rated transaction consisting of loans originated by Angel Oak-affiliated entities.

“The borrowers in this pool have strong credit profiles, with a 720 weighted-average (WA) FICO and moderate leverage,” Fitch said. The pool contains 51 loans over $1 million, with the largest being $2.9 million. Self-employed borrowers make up 69.7% of the pool, Fitch said.