Angel Oak's latest securitization to raise $272.2 million in RMBS

Angel Oak Mortgage Solutions is driving another residential mortgage deal, which will raise $272.2 million from the credit markets, according to analysts.

The AOMT 2026-2 Mortgage Trust, or AOMT 2026-2, will sell notes through about 10 tranches of class A, M and B tranches, according to bond analysts from Fitch Ratings and Kroll Bond Rating Agency. All the notes have a final scheduled maturity of February 2071.

After closing, which is expected on February 27, coupons are expected to pay coupons of 4.83% on the notes rated AAA; 5.04% on the AAA-rated A1LCF; 5.19% on the notes rated AA/AA+ by Fitch and KBRA; and 5.52% on the A rated notes, according to Asset Securitization Report's deal database.

The A1A tranche of notes will issue the bulk of the notes, $106.8 million, Fitch said. Outside of those tranches, Fitch is expected to assign BBB- to the M1 notes. KBRA, according to the deal database, assigns BBB, BB- and B- to the M1, B1 and B2 tranches.

Goldman Sachs is the lead underwriter, Fitch said. Bank of America Merril Lynch, Deutsche Bank Securities and JPMorgan Securities, meanwhile, join Goldman on the deal as managers, according to the ASR database.

When examined by loan providers, the pool of 584 home loans, primarily fixed-rate, appears to be diversified. Angel Oak is the largest originator in the pool, by percentage, according to Fitch, and accounts for 24.7% of the pool. Otherwise, Emporium TPO originated 10.0% of the pool; and various third-party home loan providers originated the rest of the 65.1%, with each contributing less than 10%, the rating agency said.

Select Portfolio Servicing will service the loans, and NewRez is on the deal as master servicer, according to Fitch.

Leverage is moderate, with a weighted average (WA) original loan-to-value (LTV) ratio of 70.6%. Also, borrowers have a Fitch FICO score of 757. Also, borrowers have about $267,499 in reserves, Fitch said.

All the loans in the pool received third-party review from a company with a final grade of A or B, helping tie the loans together and qualify them for inclusion. The entire pool is considered clean current, Fitch said.

Most of the loans, 52.15%, are considered non-qualified mortgages, and the other 47.85% have exemptions from ability-to-repay Fitch said.