Angel Oak Capital Advisors and Starwood Capital Group Global each priced new residential mortgage securitizations Wednesday.
According to market data, the $231.48 million Angel Oak Mortgage Trust 2021-2 closed on three classes of senior notes as well as a mezzanine tranche. The Class A-1 tranche totaling $175.1 million with a weighted average life of 2.15 years priced at a coupon of 0.99%, or a spread of 65 basis points over swaps.
The Class A-1, A-2 and A-3 notes carried preliminary AAA ratings from Fitch Ratings and Kroll Bond Rating Agency.
The deal was Angel Oak’s second non-qualified residential mortgage securitization this year. According to ratings agency presale reports, it was secured by a pool primarily made up of large loans taken out by self-declared income borrowers.
The transaction featured a 92.8% concentration of borrowers who used bank-statement documentation for income verification, a jump from the 78% concentration in Angel Oak’s first transaction of the year. In Angel Oak’s prior non-prime deal that priced in September 2020, the concentration was only 64.2%.
A major difference between AOMT 2021-2 and previous RMBS deals issued through the shelf “is the significant improvement in credit quality of the borrowers that reflects tightened guidelines implemented as a result of the coronavirus pandemic,” according to a presale report from Fitch.
The $231 million Starwood Mortgage Residential Trust 2021-2 deal closed at a coupon of 0.94% on a $172.9 million Class A-1 tranche with a WAL of 1.65 years. The Class A-1 notes were triple-A rated by S&P Global and DBRS Morningstar.
The 904 loans held in the Starwood pool consisted of expanded prime and non-prime first-lien mortgages, most of which had been originated by Impac Mortgage Corp. (56.1% of the pool balance), CIVIC Financial Services ( 20%), and HomeBridge Financial Services, Inc. (11.5%).
About 68.2% of the loans were for investor properties, according to DBRS Morningstar.
