Transaction is in line with company's plans to reposition its portfolio and return to the securitization market
Angel Oak Mortgage (AOMR), a leading non-QM finance firm, has announced its participation in a $580.5 million securitization, the company’s first securitization in participation with other Angel Oak entities since its initial public offering.
The transaction (AOMT 2023-1) is a $580.5 million scheduled principal balance securitization backed by a pool of residential mortgage loans. AOMR contributed loans with a scheduled principal balance of $241.3 million and will retain its pro rata share of the economics from the securitization.
The securitization has reduced the company’s whole loan warehouse debt by 51% and its mark-to-market percentage of total warehouse debt by 62% since the end of Q3 2022.
“This demonstrates further execution of the steps outlined in our strategic plan to reposition our portfolio, improve liquidity, reduce risk, and protect our capital structure,” said Sreeni Prabhu, CEO and president of AOMR. “By partnering with other Angel Oak entities, we believe we can optimize execution to accelerate our rotation into a higher-yielding portfolio.”
At closing, the securitization consisted of 1,073 loans with an average original credit score of 736 and an original average loan-to-value ratio of 71.1%. The transaction was rated by Fitch Ratings, with the senior tranche receiving a triple-A rating.
Angel Oak Mortgage said it is looking forward to executing additional securitizations in the coming months while reinvesting capital into recently originated, higher coupon loans.
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