A&D Mortgage, an issuer of Non-QM residential mortgage-backed securities, has closed its second securitization this year, along with Atlas Merchant Capital and Imperial Fund.
The $426.67 million transaction marks the 25th issued with A&D-originated collateral and is the 16th to feature collateral originated and serviced by A&D under the Imperial Fund Asset Management platform. A&D noted the securitization, which was backed by 1,136 newly originated loans, highlights growth in the Non-QM market.
A&D offers conventional, government, and Non-QM loan products, with programs for prime borrowers, foreign national borrowers, and borrowers with imperfect credit histories. The company also offers programs with no income verification for investment property loans.
“The non-QM space has experienced spectacular growth, from originations all the way through to the secondary market.”
—Max Slyusarchuk, CEO of A&D Mortgage
Key points of the securitization include:
- Volume: $426.67 million
- Loan Count: 1,136
- Loan Origination: All loans originated by A&D Mortgage or its qualified correspondents
- Average Borrower Credit Score: 742
- Weighted Average Combined Loan-to-Value (CLTV): 69.3%
- Percentage of Non-QM Loans: 37.4%
- Percentage of Investment Property Loans: 47.4%
- Servicer: 100% A&D Mortgage
With all servicing retained by A&D Mortgage, the transaction “emphasizes consistency in loan performance and investor security,” the company emphasized.
This securitization “is a testament to the ongoing, enduring appeal of the non-QM market,” said Max Slyusarchuk, CEO of A&D Mortgage and co-founder of Imperial Fund Asset Management, in a release. “For 10 years now, the non-QM space has experienced spectacular growth, from originations all the way through to the secondary market.”
“We expect to price more deals this year,” Slyusarchuk added.
A&D noted the securitization demonstrates its commitment to expanding financing solutions for borrowers with diverse income profiles. The deal expands capital access for underserved borrowers, according to the company, while also providing “a compelling opportunity for investors seeking diversified mortgage-backed assets.”
The growing demand for flexible mortgage solutions has made non-prime residential loans “essential” for self-employed professionals, real estate investors, and creditworthy borrowers outside traditional lending criteria, A&D noted. Non-QM loans “fill a crucial gap in the mortgage market by serving borrowers who have strong financials but don’t fit traditional underwriting standards.”
Atlas Merchant Capital and Imperial Fund Asset Management both are asset management companies, the former with offices in New York and London and the latter headquartered in Fort Lauderdale, Fla.
