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Fitch Rates Mostly Non-QM Offering Backed By A&D Mortgage Loans

David Krechevsky
Jan 27, 2023
Fitch Ratings

Imperial Fund Mortgage Trust 2023-NQM1 is backed by 974 loans valued at $364.84 million, with 93.8% originated by A&D.

Fitch Ratings said this week it expects to rate residential mortgage-backed certificates to be issued by Imperial Fund Mortgage Trust 2023-NQM1 (IMPRL 2023-NQM1), a securitization supported by loans primarily originated by A&D Mortgage LLC, a third-party originator.

Overall, the certificates are supported by 974 loans with a balance of approximately $364.84 million as of the cutoff date. This is the trust’s 13th transaction and the eighth rated by Fitch.

The certificates are secured primarily by newly originated, fixed-rate mortgage loans. Of the loans in the pool, 93.8% were originated by A&D Mortgage LLC; the remaining 6.2% were originated by A&D Mortgage's correspondent lenders. 

The named servicer is A&D Mortgage LLC, which is assessed by Fitch as 'RPS3'/Stable. The master servicer is Nationstar Mortgage LLC (RMS2+/Stable).

Fitch said it expects to assign the rates as follows:

  • A-1: AAA (sf)
  • A-2: AA (sf)
  • A-3: A- (sf)
  • M-1: BBB1 (sf)
  • B-1, B-2, B-3, A-IO-S, X, R: Not rated.

Of the loans in the pool, 43.2% are designated non-qualified mortgages (Non-QM), 0.1% are designated as safe harbor qualified mortgages (SHQMs) and 56.8% are not subject to the Consumer Finance Protection Bureau's (CFPB) Ability to Repay Rule, Fitch said.

The collateral consists mainly of 30-year, fixed-rate, fully amortizing loans (92.6%), followed by 2.8% 30-year, fixed-rate loans with an initial interest-only (IO) term; 1.8% 40-year, fixed-rate fully amortizing loans; 0.5% 40-year, fixed-rate loans with an initial IO term; 0.4% 30-year ARMs, and 1.9% one-year, two-year, five-year and 40-year fixed-rate loans with a balloon payment.

The pool contains 47 loans over $1 million, with the largest amounting to $2.9 million. Self-employed non-DSCR borrowers make up 56.1% of the pool (this percentage includes all non-salaried borrowers), 0.8% are asset depletion loans and 39.6% are investor cash flow DSCR loans.

The pool is seasoned at approximately four months in aggregate, as determined by Fitch.

You can read the full report at

Jan 27, 2023
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