Loans on primary and secondary residences will secure a $217.1 million mortgage-backed securities (MBS) deal that Angel Oak Home Loans plans to sponsor. Most of the loans were underwritten without full documentation, in an environment of elevated home prices.
The Angel Oak Mortgage Trust, 2022-4, will issue certificates supported by 407 home loans, two of which are adjustable-rate mortgage (ARM) loans that reference the one-year LIBOR, according to FitchRatings. The bonds, however, have no LIBOR exposure.
Fitch noted that 73.0% of the pool represents mortgages where the borrower maintains a primary or secondary home, while 27% of the pool represent investor properties. In another aspect of the pool, 74.1% of the mortgages are designated as non-qualified mortgages, while 25.9% are exempt from QM status, because they are investor loans.
Barclays Capital, Deutsche Bank Securities, Goldman Sachs and Morgan Stanley are underwriters on the transaction. Select Portfolio Servicing is also on the transaction, with Wells Fargo Bank acting as master servicer, according to Fitch.
On a weighted average (WA) basis, the mortgages securing the deal have an original loan-to-value ratio of 70.7%, WA model FICO of 744, and WA original debt-to-income ratio of 36.7%. The average loan balance on the mortgages is $533,599.
Fitch says it plans to assign ratings ranging from ‘AAA’ on the $163.9 million A-1 notes, to ‘B’ on the $2.8 million, on the B-2 outstanding notes.
