Non-QM lender A&D Mortgage has issued its latest securitization, valued at $390.6 million.
The securitization is backed by a pool of 1,171 mostly newly originated non-prime residential mortgages. The transaction closed on October 31.
All loans in the deal were originated by A&D Mortgage or its qualified correspondents.
The average borrower credit score was 735 and the weighted average loan-to-value (LTV) was 67.4%.
Non-QM loans represent 35.2% of the portfolio – and 47.4% are investment property loans.
The transaction features excess spread and subordination, providing additional protection to senior certificates against potential losses.
A&D Mortgage will service the loans, with Nationstar Mortgage LLC (d/b/a Mr. Cooper) acting as the master servicer.
A significant portion of the pool—90.35%—has been underwritten using alternative documentation methods, catering to self-employed borrowers and investors, A&D Mortgage says in a release.
The inclusion of bank statement loans (38.6%) and DSCR loans (34.0%) reflects A&D Mortgage’s focus on delivering innovative solutions for non-traditional borrowers.
In late September, Atlas Merchant Capital, A&D Mortgage, and Imperial Fund Asset Management announced a strategic joint venture aimed at expanding the non-QM mortgage securitization market.
The partnership’s first securitization under this agreement, ADMT 2024-NQM4, was launched in August 2024, quickly establishing the venture’s commitment to high-quality, non-QM asset-backed securities.
This initial securitization showcased strong market demand, attracting a diverse group of investors and setting a solid foundation for subsequent transactions, including the newly announced ADMT 2024-NQM5.
“Securitization remains a crucial engine for broadening access to capital, especially within the Non-QM mortgage space,” says Bob Diamond, founding partner and CEO of Atlas Merchant Capital, in the release. “With ADMT 2024-NQM5, our second securitization in the joint venture with A&D Mortgage and Imperial Fund Asset Management, we continue to support borrowers with diverse financial profiles while providing investors with high-quality opportunities.”
Photo: Rock Staar