"AD Mortgage Trust 2026-NQM4 is backed by 979 loans that are primarily fixed rate. Florida properties account for 25% of the pool, down from about 40% in transactions posted earlier this year, according to the announcement. California and New York represent 17.2% and 14.3% of the pool, respectively, combining with Florida to account for 56.5% of the collateral. The transaction is expected to close on May 28."
"The newly issued pool has an average borrower credit score of 755 and a weighted average combined loan-to-value ratio of 68.4%. Fixed-rate loans make up 98.8% of the collateral, according to the company. About 6.7% of the loans feature an initial interest-only period, while 4.1% are closed-end second-lien loans. Roughly 81.5% of the loans were underwritten using alternative documentation such as bank statements, debt-service-coverage ratio (DSCR) and profit-and-loss statements."
"About 22.5% of the pool is designated as nonqualified mortgages, with the balance categorized as qualified mortgages or exempted from QM rules as business-purpose loans. AD Mortgage originated 78.3% of the loans in the pool, with the remaining 21.7% coming from qualified correspondents and other lenders. AD Mortgage is the servicer for 100% of the loans."
"Morgan Stanley & Co. LLC is the structuring lead. Initial purchasers and joint bookrunners are ATLAS SP Securities (a division of Apollo Global Securities LLC), BMO Capital Markets Corp., J.P. Morgan Securities LLC, Mizuho Securities USA LLC and Nomura Securities International Inc. Co-managers include Academy Securities Inc., AmeriVet Securities Inc., Natixis Securities Americas LLC and Piper Sandler & Co."
AD Mortgage launched AD Mortgage Trust 2026-NQM4, a $407 million non-QM securitization and its fourth deal of 2026. The pool includes 979 primarily fixed-rate loans, with Florida representing 25% of collateral, down from about 40% earlier in the year. California and New York account for 17.2% and 14.3%, and Florida plus those states total 56.5% of the pool. The transaction is expected to close on May 28. The pool has an average borrower credit score of 755 and a weighted average combined loan-to-value ratio of 68.4%. Fixed-rate loans total 98.8%, with 6.7% featuring initial interest-only periods and 4.1% as closed-end second-lien loans. About 81.5% used alternative documentation, and 22.5% is designated as nonqualified mortgages. AD Mortgage originated 78.3% of loans, and it serves 100% of the loans.
#non-qm-securitization #mortgage-backed-securities #alternative-documentation #loan-to-value-and-credit-metrics #state-collateral-diversification
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]