$580.5 Million Securitization Participation: Angel Oak Mortgage, Inc. Advances Strategic Plan

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$580.5 Million Securitization Participation: Angel Oak Mortgage, Inc. Advances Strategic Plan

Feb 10, 2023 | News | 0 comments

Angel Oak Mortgage Inc. (NYSE: AOMR) announces its participation in AOMT 2023-1. AOMR is a leading real estate finance company focusing on first-lien non-QM loan acquisition and investments and other U.S. mortgage market mortgage-related assets. Backed by a pool of residential mortgage loans, AOMT 2023-1 is approximately worth $580.5 million in scheduled principal balance securitization. In its first securitization since its initial public offering, AOMR is participating alongside other Angel Oak entities.

There is $241.3 million in scheduled principal balance on the loans contributed by AOMR. The Company will keep its economics pro rata share from the securitization in addition to releasing capital. In conjunction with the non-mark-to-market financing conversions and loan sales announced in the last quarter of 2022, AOMR’s whole loan warehouse debt is reduced by this securitization by around 51% and its total warehouse debt1 mark-to-market percentage by around 62% since the end of the third quarter of 2022.

Sreeni Prabhu, Chief Executive Officer and President of AOMR, said that as outlined previously in their strategic plan, this represents a further step in repositioning their portfolio, improving liquidity, reducing risk, and protecting our capital structure. Their partners may be able to help them optimize execution and accelerate AOMR’s rotation into higher-yielding portfolios by partnering with them at this time. The company is delighted to return to the securitization market, and they look forward to executing additional securitizations during the next few months while reinvesting capital in high-coupon loans we recently originated.

A total of 1,073 loans were included in AOMT 2023-1 at deal closing. A credit score of 736 has been assigned to securitization, along with a loan-to-value ratio of 71.1% and a debt-to-income ratio of 32.2%. Triple A ratings were given to the senior tranche by Fitch Ratings.