Angel Oak Mortgage REIT Achieves $850 Million in 2024 Securitization
Angel Oak Mortgage REIT Reaches Significant Securitization Milestone
Angel Oak Mortgage REIT, Inc. (NYSE: AOMR), a prominent real estate finance company, has announced a remarkable achievement in its securitization activities for the year 2024. The firm recently participated in AOMT 2024-13, which is a significant securitization with a scheduled principal balance of $288.9 million. This exciting development brings the total securitization volume for Angel Oak in 2024 to over $850 million, showcasing the company's strong positioning in the U.S. mortgage market.
Key Details on AOMT 2024-13 Securitization
The AOMT 2024-13 securitization includes a total of 627 loans, indicating the extensive reach of Angel Oak's investment strategy. The securitization boasts a weighted average mortgage rate of 7.37%, with a commendable weighted average original credit score of 754. Furthermore, the weighted average original loan-to-value ratio stands at 69.9%, and the weighted average non-zero debt-to-income ratio is recorded at 33.8%.
Significant Company Contributions
Within the framework of this securitization, Angel Oak Mortgage REIT contributed loans amounting to a scheduled unpaid principal balance of $167.2 million. Against this contribution, the company has carried a warehouse financing of $141.5 million. This strategic participation underlines the firm’s commitment to leveraging strong loan performance while managing its financing effectively.
Future Investment Strategies
The company intends to retain its pro-rata share of the unsold bonds from the securitization, reflecting its confidence in the loans it has acquired. Additionally, Angel Oak plans to utilize the capital released from this transaction to pursue further investments in high-quality non-QM loans. This proactive strategy is aimed at driving incremental net interest income, enhancing shareholder value.
About Angel Oak Mortgage REIT, Inc.
Angel Oak Mortgage REIT, Inc. is focused on acquiring and investing in first-lien non-QM loans and a variety of mortgage-related assets in the dynamic U.S. mortgage landscape. Its core objective revolves around generating attractive risk-adjusted returns for stockholders through consistent cash distributions and capital appreciation, irrespective of interest rate fluctuations or credit cycles. The company is externally managed and advised by an affiliate of Angel Oak Capital Advisors, LLC, noted for its leading market position in mortgage credit, including asset management, lending, and capital markets management.
Frequently Asked Questions
What is the significance of AOMR's recent securitization?
The recent securitization marks a substantial increase in Angel Oak's total securitization volume for 2024, indicating the company's growth and investment strategy success.
How much did AOMR contribute to AOMT 2024-13?
AOMR contributed a scheduled unpaid principal balance of $167.2 million to the AOMT 2024-13 securitization.
What types of loans does Angel Oak focus on?
Angel Oak specializes in acquiring first-lien non-QM loans and other mortgage-related assets.
What are non-QM loans?
Non-QM loans are non-qualified mortgages that do not conform to the standard mortgage regulations set by the Consumer Financial Protection Bureau (CFPB).
What strategies does AOMR use to increase shareholder value?
AOMR aims to enhance shareholder value through accretive purchases of high-quality non-QM loans and consistent returns through cash distributions.
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