Angel Oak Mortgage launches new non-QM securitization

Company expects non-QM demand to remain robust through the year and beyond

Angel Oak Mortgage launches new non-QM securitization

Riding on the high demand for non-qualified mortgages, Angel Oak Mortgage has issued another securitization backed by residential non-QM loans.

The Atlanta-based lender, which is focused on acquiring and investing in first lien non-agency loans, said Wednesday that it closed a $316.6 million MBS collateralized by a pool of 632 residential mortgages. The MBS (AOMT 2021-4) marked Angel Oak Mortgage’s first sole securitization and the twenty-fifth residential securitization overall completed under its affiliate’s AOMT shelf.

“This securitization was executed at very strong pricing as investors continue to value non-QM assets and Angel Oak’s track record of delivering high-quality deals,” said Brandon Filson, chief financial officer of Angel Oak. “Demand for housing remains robust across the country, and we believe we can continue to execute on our loan acquisition and financing strategies through the second half of 2021 and beyond.”

Read more: Angel Oak plans to be at the forefront of non-QM growth

Angel Oak said it placed residential mortgage-backed securities with a face value of $306.4 million at a 1.12% weighted average cost of funding. It has also retained the remaining value and economic return of the collateral. The MBS had an average credit score of 739, a loan-to-value ratio of 73.8% and a debt-to-income ratio of 33.3%. Rating agency Fitch and Kroll gave the senior tranche transaction a AAA rating.