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Angel Oak Mortgage Inc., an Atlanta-based real estate finance company focused on acquiring and investing in first-lien, non-qualified mortgage loans and other mortgage-related assets in the U.S., has announced the closing of a $386.9 million securitization (AOMT 2021-7) backed by a pool of residential mortgage loans.
This was the company’s seventh securitization and its second sole securitization since its initial public offering, as well as the 28th residential securitization overall completed under its affiliate’s AOMT shelf.
“This securitization represents further evidence that we are executing our securitization strategy on a consistent basis,” said Brandon Filson, chief financial officer of AOMR. “We are happy with the execution, as investors continue to value non-QM assets and Angel Oak’s track record of delivering high-quality deals.”
He added that Angel Oak believes its loan purchase volume and the securitization market “will allow us to continue executing our core financing strategies into 2022 and beyond.”
The company placed residential mortgage-backed securities with a face value of $373.3 million at a 2.09% weighted average cost of funding. The remaining value and economic return of the collateral will be retained by the company, Angel Oak said.
The loans underlying the securitization had a weighted average coupon of 4.89%. At deal closing, AOMT 2021-7 consisted of 944 loans, almost all of which were originated by Angel Oak affiliates.
The securitization had an average credit score of 738, a loan-to-value ratio of 72.2%, and a debt-to-income ratio of 31.9%. The transaction was rated by Fitch, with the senior tranche receiving a AAA rating.
Angel Oak Mortgage Inc. is externally managed and advised by an affiliate of Angel Oak Capital Advisors LLC, which, collectively with its affiliates, is an alternative credit manager with a vertically integrated mortgage-origination platform.