Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) has announced its involvement in AOMT 2023-5, a $260.6 million securitization backed by residential mortgage loans. The company, a leading real estate finance firm, focuses on acquiring and investing in non-QM loans and mortgage-related assets in the U.S. market. AOMR participated alongside other Angel Oak entities, and the senior tranche received an AAA rating from Fitch Ratings.
Sreeni Prabhu, CEO and President of Angel Oak Mortgage REIT, Inc., has emphasized the promising momentum generated by the AOMT 2023-4 securitization. He pointed out that the Q2 results have yet to reflect its earnings impact. Prabhu also announced a successful capital release of over $45 million and a debt reduction of $260 million, both of which are expected to greatly enhance future earnings. Additionally, he highlighted that the transaction will raise the coupon rate of their remaining residential whole loans portfolio, providing vital support for future securitization endeavors.
Securitization and committed loan purchases will raise the average coupon rate of the Company’s residential whole loans portfolio to 5.53%, up 69 basis points from June 30, 2023. This will further increase as new loans are bought using capital from the securitization. AOMR contributed loans worth $93.8 million, carrying $63.5 million in debt. The AOMT 2023-5 execution boosts AOMR’s liquidity to over $150 million. The securitization includes 530 loans with an average credit score of 735, an average loan-to-value ratio of 71.9%, and a debt-to-income ratio of 32.9%. AOMR will retain its share of unsold bonds in the securitization.
Angel Oak Mortgage REIT, Inc. is a real estate finance company that focuses on acquiring and investing in non-QM loans and other mortgage-related assets in the U.S. market. They aim to generate attractive returns for stockholders through cash distributions and capital appreciation. The company is managed by Angel Oak Capital Advisors, a leading alternative credit manager. Angel Oak Mortgage REIT is a trademark owned by Angel Oak Companies, LP.