AOMR - Angel Oak Mortgage participates in $580.5M securitization

Angel Oak Mortgage ( NYSE: AOMR ) participated in AOMT 2023-1 , an ~$580.5M scheduled principal balance securitization backed by a pool of residential mortgage loans, the company said Tuesday. It is AOMR's first securitization in which it has participated along with other Angel Oak entities since its IPO.

"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," said CEO and President Sreeni Prabhu.

AOMR stock gained 2.6% in after-hours trading.

The real estate finance company focused on acquiring and investing in first-lien non-qualified mortgage loans and other mortgage-related assets contributed loans with a scheduled balance of $241.3M. In addition to releasing the capital, Angel Oak Mortgage ( AOMR ) will retain its pro rata share of the economics from the securitization.

When combined with loan sales and non-mark to market financing conversions announced in Q4, the securitization has reduced AOMR's whole loan warehouse debt by ~51% and its mark-to-market percentage of total warehouse debt by ~62% since the end of Q3 2022.

At the time of the deal closing, AOMT 2023-1 consisted of 1,073 loans. The securitization has an average original credit score of 736, an original 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 getting a triple-A rating.

In December, Angel Oak Mortgage ( AOMR ) stock fell to a new low after Bank of America downgraded the mortgage REIT to Underperform from Buy.

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