Angel Oak Mortgage Inc., a real estate finance company focused on acquiring and investing in first-lien non-QM loans and other mortgage-related assets, says it has participated in AOMT 2023-1, an approximately $580.5 million scheduled principal balance securitization.
This is the company’s first securitization in which it has participated alongside other Angel Oak entities since its initial public offering.
Angel Oak contributed loans with a scheduled principal balance of $241.3 million. In addition to releasing capital, the company will retain its pro rata share of the economics from the securitization.
In combination with the loan sales and non-mark-to-market financing conversions announced in Q4 2022, this securitization has reduced the company’s whole loan warehouse debt by approximately 51% and its mark-to-market percentage of total warehouse debt by approximately 62% since the end of Q3 2022.
“This demonstrates further execution of the steps previously outlined in our strategic plan to reposition our portfolio, improve liquidity, reduce risk and protect our capital structure,” says Sreeni Prabhu, president and CEO of Angel Oak. “By partnering with other Angel Oak entities at this time, we believe we can optimize execution to accelerate our rotation into a higher-yielding portfolio. We are pleased to return to the securitization market, and we look forward to executing additional securitizations in the coming months while reinvesting capital into recently originated, higher coupon loans.”
At deal closing, AOMT 2023-1 consisted of 1,073 loans. The securitization has an average original credit score of 736, an original average loan-to-value ratio of 71.1%, and a non-zero debt-to-income ratio of 32.2%. The transaction was rated by Fitch Ratings with the senior tranche receiving a triple A rating.
