Fitch Assigns Expected Ratings To Angel Oak Non-QM Offering

Fitch Ratings said this week it has assigned expected ratings to Angel Oak Mortgage Trust 2022-3 Mortgage-Backed Certificates, Series 2022-3 (AOMT 2022-3), 

The certificates are supported by 747 loans with a balance of $394.59 million as of the cutoff date, Fitch said. This represents the 23rd Fitch-rated AOMT transaction and the third Fitch-rated AOMT transaction in 2022, it said. The pool contains 90 loans of over $1 million, with the largest amounting to $2.9 million, it said.

The certificates are secured by mortgage loans originated by Angel Oak Home Loans LLC, Angel Oak Mortgage Solutions LLC, and Impac Mortgage Holdings Inc.; all other originators make up less than 10% of the overall loan pool. Of the loans, 66.4% are designated as non-qualified mortgage (Non-QM) loans, and 33.6% are investment properties not subject to the Ability to Repay Rule, Fitch said.

Fitch said it expects to assign the ratings as follows:

• A-1: AAA(EXP)sf
• A-2: AA(EXP)sf
• A-3: A(EXP)sf
• M-1: BBB-(EXP)sf
• B-1: BB(EXP)sf
• B-2: B(EXP)sf
• B-3, A-IO-S, XS, R: Not rated.

The New York-based ratings firm said the transaction has LIBOR exposure. Of the pool, 18 loans represent adjustable rate mortgage (ARM)  loans that reference one-year LIBOR. The class A-1 certificates are fixed rate and capped at the net weighted average coupon (WAC); the A-2, A-3, M-1, B-1, B-2, and B-3 certificates are based on the net WAC.

The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance.

To read the full report, visit www.fitchratings.com.