Angel Oak Affiliate Announces $132.65 Million Securitization of Non-Agency Residential Mortgages

ATLANTA–(BUSINESS WIRE)–Angel Oak Capital Advisors, LLC (Angel Oak Capital) announced today that it has completed AOMT 2016-1, a $132.65 million securitization primarily backed by non-Qualified Mortgages (non-QM). This securitization marks the second offering of its kind by Angel Oak Capital and represents the firm’s commitment to revitalizing the non-QM mortgage market, which has been dormant for nearly eight years.

Angel Oak Capital’s two securitizations are primarily backed by mortgages originated through the firm’s two affiliate residential mortgage lenders — Angel Oak Mortgage Solutions LLC (wholesale) and Angel Oak Home Loans LLC(retail). AOMT 2016-1 also included collateral from another affiliated lender,Angel Oak Prime Bridge, LLC. In addition to sourcing the collateral through its trusted affiliates, Angel Oak Capital (through one of its accounts) has retained 5 percent of the offered securities, to satisfy risk retention requirements of the Dodd-Frank Act, and 100 percent of the remaining classes of subordinate securities – aligning interests of all parties.

“Angel Oak’s mortgage lenders have seen a steady increase in non-QM mortgage origination volume since the inception of these programs,” said CEO and CIO, Sreeni Prabhu. “Our lending platforms are on pace to originate approximately 3,100 loans totaling approximately $800 million by year end. Angel Oak Capital will continue to selectively purchase the loans we feel fit best within securitization parameters and meet investor requirements.”

AOMT 2016-1 issued approximately $119.38 million of senior classes of certificates and approximately $13.26 million of subordinate classes of certificates for a total deal size of approximately $132.65 million.

“There is a stark difference between the collateral in our non-prime loans today and the subprime products issued prior to the financial crisis,” said John Hsu, the firm’s Head of Capital Markets. “Today’s loans adhere to the ‘ability-to-repay’ (ATR) regulation and require significant down payment.”

About Angel Oak Capital Advisors, LLC

Angel Oak Capital Advisors is an investment management firm focused on providing compelling fixed income investment solutions for its clients. Backed by a value-driven approach, Angel Oak Capital Advisors seeks to deliver attractive risk-adjusted returns through a combination of stable current income and price appreciation. Our experienced investment team seeks the best opportunities in fixed income with a specialization in mortgage-backed securities and other areas of structured credit.

As of June 30, 2016, Angel Oak Capital had over $5.5 billion in assets under management across its mutual funds, private funds and separately managed accounts.

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