A&D Mortgage has completed its second major non-QM securitization of the year – a $426.67 million transaction backed by 1,136 loans originated by the company.
Non-QM loans represented 37.4% of the securitization while investment property loans represented 47.4%.
The deal, which was done in conjunction with Bob Diamond’s Atlas Merchant Capital and Imperial Fund, marks A&D’s 25th securitization issued with A&D-originated collateral. And it is the 16th transaction to be rated by Fitch featuring collateral originated and serviced by A&D under the Imperial Fund Asset Management platform.
The growing demand for flexible mortgage solutions has made non-prime residential loans essential for self-employed professionals, real estate investors, and creditworthy borrowers outside traditional lending criteria, the firm says in a release.
Non-QM loans fill a crucial gap in the mortgage market by serving borrowers who have strong financials but don’t fit traditional underwriting standards, such as self-employed professionals and real estate investors. By utilizing alternative documentation, these loans provide critical financing options.
“The successful closing of our second securitization this year is a testament to the ongoing enduring appeal of the non-QM market,” says Max Slyusarchuk, CEO of A&D Mortgage and co-founder of Imperial Fund Asset Management. “For 10 years now, the non-QM space has experienced spectacular growth, from originations, all the way through to the secondary market. We expect to price more deals this year.”