Angel Oak Mortgage REIT, Inc. Participates in AOMT 2024-13, Bringing Its 2024 Total Securitization Volume to Over $850 Million

Rhea-AI Summary

Angel Oak Mortgage REIT (NYSE: AOMR) has participated in AOMT 2024-13, a $288.9 million securitization backed by residential mortgage loans. The company contributed $167.2 million in scheduled unpaid principal balance, marking its fifth securitization of 2024. The deal brings AOMR's total securitization volume for 2024 to over $850 million.

The securitization consists of 627 loans with a weighted average mortgage rate of 7.37%, original credit score of 754, loan-to-value ratio of 69.9%, and debt-to-income ratio of 33.8%. AOMR carried $141.5 million of warehouse financing against its contributed loans and will retain its pro-rata share of unsold bonds. The senior tranche received an AAA rating from Fitch Ratings.

Positive

• Achieved over $850 million in total securitization volume for 2024
• Senior tranche received AAA rating from Fitch Ratings
• Strong weighted average credit score of 754 in loan pool
• Conservative loan-to-value ratio of 69.9%

Negative

• None.

Insights

Financial Analyst

Angel Oak Mortgage REIT's latest securitization move demonstrates strong execution in the non-QM market. The $167.2 million contribution to AOMT 2024-13 showcases high-quality loan characteristics with a solid weighted average credit score of 754 and conservative LTV of 69.9%. The $141.5 million warehouse financing release provides significant capital flexibility for reinvestment. The AAA rating from Fitch on the senior tranche indicates strong structural quality, while the 7.37% weighted average mortgage rate suggests healthy potential returns. With this being their fifth securitization in 2024, bringing total volume to over $850 million, AOMR is showing robust origination capabilities and maintaining strong momentum in the non-QM space.

Market Research Analyst

The successful execution of AOMT 2024-13 reflects growing market appetite for non-QM securities. The conservative debt-to-income ratio of 33.8% and high credit quality metrics indicate strong underwriting standards, which is important in the current market environment. The deal structure, allowing AOMR to retain pro-rata shares of unsold bonds, provides ongoing income potential while maintaining skin in the game. This securitization strategy effectively transforms illiquid mortgage assets into tradeable securities, enhancing balance sheet efficiency. The company's ability to consistently execute securitizations suggests strong institutional relationships and market positioning in the non-QM sector.

Company contributes $167 million in scheduled unpaid principal balance to its fifth securitization of the year.

ATLANTA--(BUSINESS WIRE)-- Angel Oak Mortgage REIT, Inc. (NYSE: AOMR), (the “Company,” “we,” and “our”), a leading real estate finance company focused on acquiring and investing in first-lien non-QM loans and other mortgage-related assets in the U.S. mortgage market, announces its participation in AOMT 2024-13, a $288.9 million scheduled principal balance securitization backed by a pool of residential mortgage loans to which AOMR contributed a scheduled unpaid principal balance of $167.2 million. AOMR participated in AOMT 2024-13 alongside other Angel Oak entities. The senior tranche received an AAA rating from Fitch Ratings.

Key Highlights

• In total, AOMT 2024-13 consists of 627 loans. The securitization has a weighted average mortgage rate of 7.37%, a weighted average original credit score of 754, a weighted average original loan-to-value ratio of 69.9%, and a weighted average non-zero debt-to-income ratio of 33.8%.
• AOMR contributed loans with a scheduled unpaid principal balance of $167.2 million, against which it carried $141.5 million of warehouse financing.
• AOMR will retain its pro-rata share of the unsold bonds in the securitization.
• The Company plans to deploy capital released from the deal to continue accretive purchases of high-quality non-QM loans to drive incremental net interest income.

Forward Looking Statements

This press release contains certain forward-looking statements that are subject to various risks and uncertainties, including, without limitation, statements relating to the performance of the Company’s investments. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “believe,” “could,” “project,” “predict,” “continue,” or by the negative of these words and phrases or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe existing or future plans and strategies, contain projections of results of operations, liquidity and/or financial condition, or state other forward-looking information. The Company’s ability to predict future events or conditions, their impact or the actual effect of existing or future plans or strategies is inherently uncertain. Although the Company believes that such forward-looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those set forth in or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward‐looking statements, which reflect the Company’s views only as of the date of this press release. Additional information concerning factors that could cause actual results and performance to differ materially from these forward-looking statements is contained from time to time in the Company’s filings with the Securities and Exchange Commission. Except as required by applicable law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward‐looking statements. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.

About Angel Oak Mortgage REIT, Inc.

Angel Oak Mortgage REIT, Inc. is a real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the U.S. mortgage market. The Company’s objective is to generate attractive risk-adjusted returns for its stockholders through cash distributions and capital appreciation across interest rate and credit cycles. The Company is externally managed and advised by an affiliate of Angel Oak Capital Advisors, LLC, which, collectively with its affiliates, is a leading alternative credit manager with market leadership in mortgage credit that includes asset management, lending, and capital markets. Additional information about the Company is available at www.angeloakreit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216898919/en/

Investors:

investorrelations@angeloakreit.com

855-502-3920

IR Agency Contact:

Nick Teves or Joseph Caminiti

Alpha IR Group

AOMR@alpha-ir.com

312-445-2870



Company Contact:

KC Kelleher, Angel Oak Mortgage REIT, Inc.

Head of Corporate Finance & Investor Relations

404-528-2684

kc.kelleher@angeloakcapital.com

Source: Angel Oak Mortgage REIT, Inc.

FAQ

What is the total value of AOMR's contribution to AOMT 2024-13 securitization?

AOMR contributed $167.2 million in scheduled unpaid principal balance to the AOMT 2024-13 securitization.

What is AOMR's total securitization volume for 2024?

AOMR's total securitization volume for 2024 exceeds $850 million, with AOMT 2024-13 being their fifth securitization of the year.

What are the key metrics of AOMT 2024-13 securitization?

AOMT 2024-13 has a weighted average mortgage rate of 7.37%, credit score of 754, loan-to-value ratio of 69.9%, and debt-to-income ratio of 33.8%.

How much warehouse financing did AOMR carry against its contributed loans?

AOMR carried $141.5 million of warehouse financing against its contributed loans in the AOMT 2024-13 securitization.

What rating did the senior tranche of AOMT 2024-13 receive?

The senior tranche of AOMT 2024-13 received an AAA rating from Fitch Ratings.