Company pays down its most expensive warehouse facility
Angel Oak Mortgage REIT (AOMR) has participated in a $260.6 million securitization as part of its strategy to reduce funding costs and free up capital.
The non-QM finance firm and other Angel Oak entities prepared a securitization deal, backed by a poll of 530 residential mortgage loans, projected to bring AOMR’s total liquidity to over $150 million.
The transaction and committed loan purchases will increase the weighted average coupon rate of the company’s residential whole loans portfolio to 5.53%. “This is expected to continue to increase as newly-originated loans are purchased with capital released from the securitization,” Angel Oak said in its press release.
“[This securitization] builds upon the positive momentum of June’s AOMT 2023-4 securitization, the earnings impact of which had not yet been demonstrated in our Q2 results,” said Sreeni Prabhu, president and CEO of Angel Oak Mortgage REIT. “Between these two securitizations, we have released over $45 million in capital for new loan purchases and reduced over $260 million of debt on our highest-cost loan financing facility, which will drive a meaningful positive impact on earnings in the coming quarters.”
Read more: Angel Oak Mortgage takes part in first securitization since IPO, reduces warehouse debt
AOMR contributed loans with a scheduled unpaid principal balance of $93.8 million, against which it carried $63.5 million of debt on its most expensive warehouse facility.
“This transaction increases the weighted average coupon rate of our remaining residential whole loans portfolio, which should support future securitization execution.”
Want to keep up with the latest mortgage news? Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
