Angel Oak Latest Securitization: $284.5 Million


Angel Oak Mortgage REIT Inc., a real estate finance company focused on acquiring and investing in first-lien non-QM loans and other mortgage-related assets in the U.S. mortgage market, has priced AOMT 2023-4, an approximately $284.5 million scheduled principal balance securitization backed by a pool of residential mortgage loans, all of which were contributed by the company. The senior tranche received an AAA rating from Fitch Ratings.

“We believe that this securitization represents an inflection point in our business, as the approximately $30 million of capital that will be released through AOMT 2023-4 allows us to materially expand the loan acquisition activity that we began earlier this quarter,” said Sreeni Prabhu, CEO and president of Angel Oak Mortgage REIT Inc. “By leveraging our affiliated loan origination platform to accelerate loan purchase activity, we can compound the impact of the derisking actions we’ve taken over the previous quarters while driving meaningful net interest income growth.”

Key highlights and updates:

  • AOMT 2023-4 includes a portfolio of 606 non-QM loans with a scheduled principal balance of $284.5 million, a weighted average loan coupon of 4.5%, a weighted average original loan-to-value ratio of 71.3% and a weighted average original FICO score of 734.
  • With the capital released from the securitization, AOMR intends to accelerate purchases of current market coupon loans.
  • Prior to the announced transaction, AOMR had begun actively purchasing newly originated loans carrying a weighted average loan coupon of 8.2%, a weighted average original loan-to-value ratio of 72% and a weighted average original FICO score of 749.
  • The securitization will reduce AOMR’s whole loan warehouse debt by approximately 45.6% versus the first quarter of 2023, bringing the total reduction in its whole loan warehouse debt since the end of the third quarter of 2022 to approximately 73.7%.

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