The transaction is backed by a pool of 1,290 loans, with 45% of them tied to investment properties, and includes a mix of non-QM loans such as bank-statement and debt-service-coverage ratio (DSCR) mortgages.
The pool has a weighted average credit score of 745 and a weighted average combined loan-to-value ratio of 68.9%. All of the loans were originated by A&D Mortgage or one of its qualified correspondents.
Last month, A&D announced the acquisition of the wholesale and nondelegated correspondent businesses of Mr. Cooper Group in a deal that’s expected to close by the end of March. The two entities being acquired funded more than $10 billion in originations in 2024, A&D reported.
“We took a very careful and measured approach to finding a potential partner to grow our QM business,” A&D Mortgage CEO Max Slyusarchuk said at the time. “A&D’s goal is to be an industry leader, and this transaction is a big step forward.”
In September 2024, A&D partnered with global investment firm Atlas Merchant Capital on a joint venture that expanded A&D’s $7 billion securitization platform. Imperial said at the time that the goal was to securitize loans for investment across a range of securities in sponsored transactions.
The joint venture closed its first RMBS deal in August that involved $370 million in mortgages originated by A&D. The deal was rated by S&P Global and Kroll Bond Rating Agency. It was A&D’s 21st deal but first under its partnership with Atlas.
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