As HELOC Opportunities Grow, Angel Oak Completes Its First HELOC Securitization – NMP Skip to main content

As HELOC Opportunities Grow, Angel Oak Completes Its First HELOC Securitization

May 15, 2025
Angel Oak Debuts HELOC Securitization
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$191M inaugural offering sees strong investor interest; company says it plans to package more HELOCs alongside Non-QM securitizations

Angel Oak Capital Advisors LLC, the investment management and securitization arm of Angel Oak specializing in mortgage-backed securities (MBS) and other securitized credit areas, completed its first home equity line of credit (HELOC) securitization, expanding its residential mortgage securitization platform. 

The roughly $191 million securitization is backed by HELOCs originated through Angel Oak’s affiliate lending channel, Angel Oak Mortgage Solutions, and third-party channels.  

“We remain solidly bullish on U.S. housing overall, relative to other areas of credit, and the broader fixed-income landscape,” stated Sreeni Prabhu, co-CEO and managing partner at Angel Oak, in a release. Differentiated opportunities such as HELOC securitizations “present compelling investments,” Prabhu contended. 

As opportunity in the HELOC space grows, Angel Oak intends to continue delivering HELOC securitizations to the market alongside the non-QM securitizations for which the firm is known.

Angel Oak has now issued more than 60 securitizations since 2015, comprising more than 50,000 non-agency mortgage loans, for a total of approximately $22 billion.

According to the company, this latest securitization — Angel Oak’s sixth so far this year — showed strong investor appetite. The deal has a weighted average coupon of about 10.9%, with an average FICO score of 746 and a combined loan-to-value ratio of 63%, reflecting "relatively strong" borrower credit quality, Angel Oak noted. 

Bringing Angel Oak’s expertise into the HELOC space demonstrates the company’s ability “to innovate in the market while maintaining the high standards and operational success that investors expect from the [Angel Oak Mortgage Trust] platform,” stated Namit Sinha, Angel Oak’s managing director and chief investment officer.

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