Olivier Le Moal
Angel Oak Mortgage REIT (NYSE:AOMR) said on Tuesday it participated in AOMT 2023-5, an ~$260.6M scheduled principal balance securitization backed by a pool of residential mortgage loans.
The company that acquires and invests in first-lien non-qualified mortgage loans and other mortgage-related assets said, similar to this year's AOMT 2023-1 securitization, Angel Oak Mortgage REIT (AOMR) participated along with other Angel Oak entities. The senior tranche received an AAA rating from Fitch Ratings.
Between AOMT 2023-5 and AOMT 2023-4, the two securitizations relesed more than $45M in capital for new loan purchases and reduced more than $260M of debt on its highest-cost loan financing facility. That will "drive a meaningful positive impact to earnings in the coming quarters," said Sreeni Prabhu, CEO and president of AOMR.
The transaction also increases the weighted average coupon rate of Angel Oak Mortgage's (AOMR) remaining residential whole loans portfolio, which should support future securitization execution, Prabhu said.
AOMR contributed loans with a scheduled unpaid principal balance of $93.8M, against which it carried $63.5M of debt on its highest-cost loan financing facility. The securitization and committed loan purchases will increase the weighted average coupon rate of AOMR's residential whole loans portfolio to 5.53%, up from 4.84% as of June 30, 2023.
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