Angel Oak Mortgage Trust 2025-1 Receives Preliminary Ratings

Angel Oak Mortgage Trust 2025-1 Ratings Overview

KBRA has recently assigned preliminary ratings to various classes of mortgage-backed certificates associated with Angel Oak Mortgage Trust 2025-1 (AOMT 2025-1). This substantial transaction amounts to $342.0 million and comprises non-prime residential mortgage-backed securities (RMBS). It encompasses a pool of 631 residential mortgages, which present an intriguing mixture of differing loan characteristics.

A notable feature of this transaction is the significant concentration of loans that have been underwritten with alternative income documentation. Such loans are predominantly classified either as non-qualified or exempt from the Ability-to-Repay/Qualified Mortgage rule, with 56.6% identified as non-qualified mortgages and 43.4% deemed exempt due to their origination for non-consumer purposes. Angel Oak Mortgage Solutions plays a major role in this context, having originated 43.0% of the overall pool, highlighting its significant presence in the transaction.

Detailed Analysis and Rating Methodology

To develop these ratings, KBRA utilized its Residential Asset Loss Model (REALM), conducting meticulous loan-level analysis of the mortgage pool. This structured approach also involved a comprehensive review of third-party loan file due diligence, extensive cash flow modeling to understand the transaction's payment structure, and evaluations of the key parties involved in the transaction.

This thorough analysis emphasizes the legal structure and documentation of the transaction, ensuring that every aspect aligns with industry standards and risk assessments. The methodology used is consistent with KBRA's established U.S. RMBS Rating Methodology, ensuring that it reflects current market conditions and borrower characteristics accurately.

How to Access Ratings and Reports

Interested parties can access the preliminary ratings along with related documents to gain further insights into the Angel Oak Mortgage Trust 2025-1 (AOMT 2025-1). Such resources are crucial for stakeholders, including investors and analysts, who wish to better understand the underlying components of this RMBS transaction.

Additional Reports and Methodologies

Further publications that provide related information include the AOMT 2025-1 Tear Sheet and the RMBS KCAT report, which assist in understanding the broader implications of these ratings. These documents outline essential details and provide extensive insights into the ratings and their implications on the investment strategy in non-prime mortgage-backed securities.

Disclosure of Ratings and Methodologies

KBRA has ensured that transparent information on essential credit considerations, including sensitivity analyses that can influence credit ratings, is available. These factors are key drivers that could potentially lead to upgrades or downgrades of the assigned ratings and are crucial for ongoing risk assessment.

Moreover, vital information on all significant sources used to compile the credit ratings, alongside the methodologies applied, can be located in the Information Disclosure Form(s) that are essential for deepening the understanding of the rating process.

About Kroll Bond Rating Agency

Kroll Bond Rating Agency, LLC (KBRA) operates as a comprehensive credit ratings provider, registered as an NRSRO with the U.S. Securities and Exchange Commission. This agency has a robust presence in the credit rating industry, offering insights that help investors make informed decisions regarding various securities, including asset-backed securities. Its designations by multiple regulatory authorities globally reinforce its credibility and reliability as a credit rating agency.

Frequently Asked Questions

What are the ratings assigned to Angel Oak Mortgage Trust 2025-1?

The ratings assigned by KBRA for Angel Oak Mortgage Trust 2025-1 (AOMT 2025-1) include multiple classes of mortgage-backed certificates that reflect the pool's risk characteristics.

What types of loans comprise the Angel Oak Mortgage Trust?

The trust consists of loans that are primarily non-qualified and exempt from certain regulations, showcasing a concentration in alternative income documentation.

What methodology does KBRA use for ratings?

KBRA employs its Residential Asset Loss Model (REALM) and conducts comprehensive analyses, including loan-level assessments and third-party due diligence.

How can investors access the reports related to this trust?

Investors can access relevant ratings and reports by visiting KBRA’s website where all essential documents pertaining to the AOMT 2025-1 are available.

What is the role of Kroll Bond Rating Agency in the industry?

KBRA acts as a key player in the credit rating industry, providing insights and ratings that help inform investment strategies across different sectors, including asset-backed securities.

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