A&D Mortgage, a provider of non-QM and residential mortgage-backed securities (RMBS), is has launched its latest securitization, a $458.93 million transaction backed by a pool of 1,290 loans.
The loan pool has a weighted average credit score of 745 and a weighted average combined loan-to-value (CLTV) ratio of 68.91%. The securitization comprises both prime and nonprime loans, including bank statement, debt service coverage ratio (DSCR), and other alternative income documentation products, the company says in a release.
Approximately 45% of the loans are investment property loans, reinforcing A&D Mortgage’s strong foothold in the non-QM lending space.
About 38% of the pool is non-QM loans.
A&D Mortgage will service the loans.
The deal includes multiple classes of rated certificates, with AAA rating assigned to the senior tranche, highlighting the strength of the underlying loan pool and the credit enhancement structure.
Initial purchasers for the transaction include Nomura Securities International, ATLAS SP Securities (a division of Apollo Global Securities), Barclays Capital, BMO Capital Markets, BNP Paribas, Guggenheim Securities, Jefferies, Mizuho Securities USA, Academy Securities, AmeriVet Securities, and Piper Sandler & Co.
Photo: Giorgio Trovato