Non-QM Securitization Closes

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A securitization of primarily non-agency residential loans that don’t meet the requirements of the Qualified Mortgage rule has been completed.

The residential mortgage-backed securities
included $119 million in senior classes of certificates and $13 million in subordinate classes.

But although the securitized loans are not considered QM, they do adhere to the Ability-to-Repay rule and require significant down payments.

That is according to
Angel Oak Capital
Advisors LLC, which announced the completion of
AOMT 2016-1 on Tuesday.

Atlanta-based company retained 5 percent of the offered securities to satisfy risk-retention requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act in addition to retaining all of the remaining classes of subordinate securities.

It was the second offering of its kind by the $5.5 billion investment management firm.

Loans in the company’s two securitizations so far were originated by wholesale-affiliate Angel Oak Mortgage Solutions LLC and retail-affiliate Angel Oak Home Loans LLC — though some collateral from affiliate Angel Oak Prime Bridge LLC was also included.

“Our lending platforms are on pace to originate approximately 3,100 loans totaling approximately $800 million by year end,” Angel Oak Capital Chief Executive Officer and Chief Investment officer Sreeni Prabhu stated in the announcement. “Angel Oak Capital will continue to selectively purchase the loans we feel fit best within securitization parameters and meet investor requirements.”

Mortgage Expert

Mortgage Daily Staff