Angel Oak Capital Advisors, LLC (Angel Oak), announced it has completed AOMT 2018-2, a $402 million securitization almost entirely comprised of non-QM residential mortgages. The securitization is backed by mortgages that were primarily sourced through the firm’s three affiliated mortgage lenders, Angel Oak Mortgage Solutions, LLC, Angel Oak Home Loans, LLC, and Angel Oak Prime Bridge. The senior tranche of AOMT 2018-2 received an AAA rating from both Fitch and DBRS.

AOMT 2018-2 marks Angel Oak’s largest non-QM securitization to date. Its seven non-QM securitizations now account for approximately $1.6 billion in total securitized residential loans. All seven securitizations have been largely backed by mortgages originated through Angel Oak’s affiliated lenders.

“Our vertically integrated model allows us to securitize loans originated by our affiliated lending businesses that meet our investment parameters. The success of our affiliated lending companies is proof that our model works. Investors have confidence in both the transparency provided by our origination and in our underwriting capabilities,” said Sreeni Prabhu, Angel Oak co-CEO and CIO.

The deal was comprised of 1,096 loans with an average weighted credit score of 704 and an average loan amount of $366,797. The majority of the loans included in the securitization were issued in California, Florida and Georgia.

“Our securitizations have established a strong investor base following our program’s frequent issuance, execution and consistent quality. Angel Oak’s leadership in both non-QM securitizations and originations continues to be recognized throughout the industry,” said Lauren Hedvat, managing director of capital markets.