Fitch Rates Angel Oak Mortgage Trust's 6th Non-QM Offering

Fitch Ratings said this week it has assigned expected ratings to Angel Oak Mortgage Trust 2022-6 (AOMT 2022-6), Angel Oak’s sixth private-label securities offering this year.

The certificates are supported by 795 loans with a balance of $389.3 million as of the cut-off date, Fitch said. The certificates are secured by mortgage loans mainly originated by Angel Oak Mortgage Solutions LLC, Greenbox Loans Inc., and Angel Oak Home Loans LLC. All other originators make up less than 10% of the loan pool, Fitch said.

Of the loans, 64.3% are designated as non-qualified mortgage (Non-QM) loans, and 35.7% are investment properties not subject to the Ability-to-Repay (ATR) Rule.

The borrowers have a strong credit profile: 737 FICO and 41.3% debt-to-income (DTI) ratio, as determined by Fitch, along with relatively moderate leverage, with an original combined loan to value (CLTV) ratio of 71.5%,, which translates to a Fitch-calculated sustainable LTV (sLTV) of 76.7%.

Of the pool, 62% represents loans for which the borrower maintains a primary or secondary residence; the remaining 38% comprises investor properties based on Fitch's analysis and the transaction documents, it said.

The pool contains 78 loans over $1 million, with the largest amounting to $3 million.

Fitch assigned the expected ratings as follows:

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

The full report is available at www.fitchratings.com.