A&D Mortgage prices latest non-QM securitization deal

The loans reflect a weighted average loan-to-value (LTV) ratio of 67.4% and an average borrower credit score of 743. Investment property loans make up a significant portion of the pool, comprising 45.3%, while 35.3% of the mortgages fall into the non-QM category.

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The transaction includes credit enhancements, such as excess spread and subordination, alongside a hybrid pro-rata/sequential payment structure designed to protect senior certificate holders. A&D Mortgage serves as the primary servicer, while Nationstar Mortgage, operating as Mr. Cooper, will act as the master servicer.

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“Securitization remains a cornerstone for expanding access to capital, especially within the non-QM mortgage sector,” Bob Diamond, founding partner and CEO of Atlas Merchant, said in a Press release. “The ADMT 2024-NQM6 transaction underscores our shared commitment with A&D Mortgage to delivering innovative, high-quality asset-backed securities. This deal represents a sound investment, fortified by strong credit enhancements and dynamic collateral, making it resilient against market fluctuations.”

The transaction has received strong preliminary ratings from both S&P Global Ratings and Kroll Bond Rating Agency (KBRA), with the senior classes achieving ratings as high as AAA (sf). These ratings affirm the quality of the collateral and the strength of A&D Mortgage’s underwriting processes.