
Angel Oak Closes Third Non-QM Securitization Since June IPO

This was the company’s eighth securitization, as well as the 30th residential securitization overall completed under its affiliate’s shelf.
Angel Oak Mortgage Inc., a real estate finance company, has announced the closing of a $537.6 million securitization (AOMT 2022-1) backed by a pool of residential mortgage loans.
As of the closing, the company has securitized over $1.2 billion in non-qualified mortgage (non-QM) loans since its June initial public offering. This was Angel Oak's eighth securitization and its third sole securitization since its initial public offering, as well as the 30th residential securitization overall completed under its affiliate’s AOMT shelf.
“Given current market conditions, we are very pleased with the execution of this securitization,” said Angel Oak Chief Financial Officer Brandon Filson.
Angel Oak’s affiliated mortgage companies recently announced they anticipate originating over $7.5 billion in non-QM loans in 2022, compared to $3.9 billion originated in 2021.
“Angel Oak’s leadership within the non-QM space will continue to differentiate us in the market, and we are excited for the continued growth possible in 2022,” Filson said.
The company placed residential mortgage-backed securities with a face value of $520.9 million at a 3.06% weighted average (WA) cost of funding. The remaining value and economic return of the collateral will be retained by the company.
The loans underlying the securitization had a WA coupon of 4.48%. At deal closing, AOMT 2022-1 consisted of 1,138 loans. The securitization had an average credit score of 744, a loan-to-value ratio of 70.6%, and a debt-to-income ratio of 32.7%. The transaction’s senior tranche received Fitch’s AAA rating.
Angel Oak Mortgage Inc. is a real estate finance company focused on acquiring and investing in first-lien, non-QM loans and other mortgage-related assets in the U.S. mortgage market.
The company 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.