Angel Oak Mortgage REIT Inc. (AOMR), a real estate finance company focused on acquiring and investing in first-lien non-QM loans and other mortgage-related assets, is participating in AOMT 2023-5, an approximately $260.6 million scheduled principal balance securitization backed by a pool of residential mortgage loans.
Similar to this year’s AOMT 2023-1 securitization, AOMR participated in AOMT 2023-5 alongside other Angel Oak entities. The senior tranche received an AAA rating from Fitch Ratings.
“AOMT 2023-5 builds upon the positive momentum of June’s AOMT 2023-4 securitization, the earnings impact of which had not yet been demonstrated in our Q2 results. Between these two securitizations, we have released over $45 million in capital for new loan purchases and reduced over $260 million of debt on our highest-cost loan financing facility, which will drive a meaningful positive impact to earnings in the coming quarters,” says Sreeni Prabhu, CEO and president of Angel Oak Mortgage REIT Inc.
Updates:
- The securitization and committed loan purchases will increase the weighted average coupon rate of the company’s residential whole loans portfolio to 5.53%, up 69 basis points from 4.84% as of June 30, 2023. This is expected to continue to increase as newly originated loans are purchased with capital released from the securitization.
- AOMR contributed loans with a scheduled unpaid principal balance of $93.8 million, against which it carried $63.5 million of debt on its highest-cost loan financing facility.
- The execution of AOMT 2023-5 brings AOMR’s total liquidity (unrestricted cash and unencumbered assets) to over $150 million. In total, AOMT 2023-5 consists of 530 loans.
- The securitization has an average original credit score of 735, an original average loan-to-value ratio of 71.9% and a non-zero debt-to-income ratio of 32.9%.
- AOMR will retain its pro-rata share of the unsold bonds in the securitization.
