The latest transaction is supported by a pool of 1,290 loans, with 45% of them linked to investment properties. It consists of a variety of non-QM loans, including bank-statement and debt-service-coverage ratio (DSCR) mortgages.
This pool boasts a weighted average credit score of 745 and a weighted average combined loan-to-value ratio of 68.9%. All the loans originated from A&D Mortgage or its qualified correspondents.
Recently, A&D revealed its acquisition of the wholesale and nondelegated correspondent businesses of Mr. Cooper Group. This deal, anticipated to be finalized by the end of March, involves entities that collectively funded over $10 billion in originations in 2024.
“We conducted a thorough search to identify a suitable partner to enhance our QM business,” stated A&D Mortgage CEO Max Slyusarchuk. “A&D’s objective is to become an industry leader, and this transaction marks a significant milestone in that direction.”
In September 2024, A&D entered into a joint venture with global investment firm Atlas Merchant Capital, expanding its $7 billion securitization platform. The aim of this collaboration was to securitize loans for investment through various securities in sponsored transactions.
The joint venture successfully concluded its first RMBS deal in August, involving $370 million in mortgages originated by A&D. This deal, rated by S&P Global and Kroll Bond Rating Agency, marked A&D’s 21st transaction and its first under the partnership with Atlas.