Angel Oak Capital Completes Fourth Securitization of 2024, Fueled by Rapid Growth of Mortgage Solutions Origination Platform

The firm’s latest securitization results from a strengthening pipeline of loan volume and talent growth across Angel Oak Mortgage Solutions

Angel Oak Capital Advisors LLC, an investment management firm that specializes in value-driven structured credit investing, announced today the issuance of its fourth securitization of the year, AOMT 2024-4. Angel Oak Capital’s four securitizations of 2024 total approximately $1.4 billion in issuance, with an average FICO score of 741, an average loan-to-value ratio of 71.4% and a debt-to-income ratio of 32.4% across the securitizations. The senior tranche for all four securitizations received a rating of AAA by Fitch.

“The execution of our fourth securitization this year is indicative of our firm’s broader success in scaling growth and delivering investment solutions that cater to market demand,” said Namit Sinha, Chief Investment Officer at Angel Oak Capital. “Institutional investors continue to see opportunities to invest in the residential mortgage credit space through Angel Oak,” Sinha explained, “due to our consistent quality, vertically integrated approach and tenured team expertise that has proven to adapt successfully to changing market dynamics.”

Growth of the firm’s affiliated mortgage origination arm, Angel Oak Mortgage Solutions, which has contributed approximately 72% of the loans to this year’s securitizations, has spearheaded the success and breadth of Angel Oak Capital’s securitizations. Angel Oak Mortgage Solutions has expanded significantly in both origination volume and talent acquisition, a particularly notable accomplishment at a time marked by high interest rates, declining mortgage demand overall and economic volatility. The firm’s year-over-year origination volume for the firm grew over 80% from 2023. To supplement this increase in loans, the firm increased its account executive team by nearly 25% in the same period.

“Despite the new normal of higher rates, we continue to experience incredible growth as partners we work with find our non-qualified mortgage products to be a great fit for borrowers seeking flexible mortgage options,” said Tom Hutchens, Angel Oak Mortgage Solutions’ executive vice president of production. “Our extensive experience in non-QM products allows us to serve a wider array of borrowers and find niche opportunities despite strained market conditions. We’ve already seen significant traction with our new Bank Statement HELOC product introduced earlier this year, and we look forward to building off of the momentum we’ve achieved in the first four months of 2024.”

About Angel Oak Capital Advisors LLC

Angel Oak Capital is an investment management firm focused on providing compelling fixed-income investment solutions to its clients. Backed by a value-driven approach, Angel Oak Capital seeks to deliver attractive, risk-adjusted returns through a combination of stable current income and price appreciation. Its experienced investment team seeks the best opportunities in fixed income, with a specialization in mortgage-backed securities and other areas of structured credit.

For more information, please visit www.angeloakcapital.com.

About Angel Oak Mortgage Solutions LLC

Angel Oak Mortgage Solutions, a leader in alternative lending solutions, is a top wholesale and correspondent provider of non-QM loans in the nation. Its team of mortgage experts has pioneered a fresh, commonsense approach to overcoming today’s mortgage lending challenges. The team operates in 44 states, with a breadth of non-QM products that expands the pool of borrowers, offering partners more opportunities to grow their businesses and better serve their customers.

For more information, please visit www.angeloakms.com.

This document does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. It is provided for information purposes only and on the understanding that the recipient has sufficient knowledge and experience to be able to understand and make their own evaluation of the proposals and services described herein, any risks associated therewith and any related legal, tax, accounting, or other material considerations. To the extent that the reader has any questions regarding the applicability of any specific issue discussed above to their specific portfolio or situation, prospective investors are encouraged to contact Angel Oak Capital Advisors or consult with the professional advisor of their choosing.

There is no guarantee that the investment objectives will be achieved. Moreover, past performance is not a guarantee or indicator of future results.

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