Seeing an upswing in the residential mortgage, particularly non-agency lending to prime borrowers, Atlas Merchant Capital, A&D Capital and Imperial Find Asset Management are creating a joint venture to expand A&D Mortgage's $7 billion mortgage securitization platform, according to a joint statement from the companies.
This is the first time that the companies are discussing the joint venture publicly, but it has already produced a deal,
Going ahead, the joint venture will use a combination of internal and third-party capital to purchase mortgage loans that A&D originates and services, while investing in a range of mortgage securities on the transactions, according to a statement from the companies. A&D Mortgage, which sources is production mainly through a network of wholesalers across the country, has originated more than $10 billion in originations since 2020, and has a servicing portfolio exceeding $8 billion.
"Our JV partnership with Atlas will accelerate A&D's growth and our mission of helping more Americans achieve their dream of homeownership," according to a statement from Max Slyusarchuk, founder and chief executive officer at A&D Mortgage.
The news comes the week when the Federal Open Markets Committee is expected to lower the Federal Funds Rate, currently 5.25%-5.50%, for the first time since March 2020, encouraging a range of markets.
"The timing of this partnership could not be better as the tone of the mortgage market has been improving, which would provide a large tailwind for this asset class," according to a statement from Bob Diamond, co-founder and chief executive at Atlas Merchant Capital.
