More than $150 million in nonprime home loans have been securitized in a transaction type that has been a rarity since the mortgage market meltdown in 2007.
The residential mortgage-backed securities consist of 555 loans for $150.4 million. There is a $135.3 million mezzanine class and a $15.0 million subordinate class.
On a weighted-average basis, the FICO score on the loans in the deal exceeds 680, while
down payments on the individual mortgages are at least 20 percent.
Behind the RMBS transaction is Angel Oak Capital Advisors LLC, which said Thursday that the loans were originated by affiliates Angel Oak Mortgage Solutions and Angel Oak Home Loans.
“The securitization is the culmination of four years of careful planning and efforts to redevelop a market that has been non-existent for over seven years,” the statement said.
Angel Oak
Capital Co-Chief Executive Officer Sreeni Prabhu explained in the statement that average credit scores are 100 points higher than pre-crisis subprime loans.
“The loans originated by our affiliates strictly adhere to the eight pillars of the ‘ability-to-repay’ regulation,” Prabhu stated.
The Atlanta-based firm noted that Nomura Securities International Inc. served as the initial purchaser and sole book runner of the securitization. The representations and warranties were reviewed by Clayton Services LLC, while American Mortgage Consultants Inc. acted as the securitization’s due diligence provider.
Select Portfolio Servicing Inc. is servicing the loans, and the trustee is U.S. Bank, N.A.
Katten Muchin Rosenman LLP served as Angel Oak Capital’s legal counsel.
