AD Mortgage Returns To Market With $424 M Non-QM Securitization, Broadening Geographic Reach

AD Mortgage, a provider of non-QM and residential mortgage-backed securities (RMBS), announced the successful launch of AD Mortgage Trust 2026-NQM3 (ADMT 2026-NQM3), the company’s third securitization of 2026 — and a milestone transaction that underscores the company’s rapid geographic expansion across the United States.

A defining feature of the $424.1 million deal is a dramatic reduction in Florida loan concentration, dropping to 23.0% of the collateral pool from 40.0% in the prior NQM2 transaction — a 17-percentage-point decline that signals AD Mortgage’s successful growth into a truly national origination platform.

The sharp reduction in Florida concentration is a direct result of AD Mortgage’s acquisition of the Flagstar third-party originator (TPO) platform in early 2025, which effectively doubled the company’s broker network and accelerated loan production across new geographic markets. What was once a Florida-rooted portfolio has rapidly evolved into a diversified national collateral pool, with the company’s expanded broker relationships driving originations in markets far beyond its Fort Lauderdale headquarters.

“This transaction further demonstrates our commitment to providing consistent, high-quality non-QM RMBS product to the market,” said Victor Kuznetsov, Managing Director of Imperial Fund Asset Management. “With three deals now priced in 2026 and a clean, well-performing collateral pool, we continue to build on the strength of the AD Mortgage platform and the trust investors have placed in our securitization program.”

The transaction, which is expected to close on April 21, 2026, is backed by a pool of 945 mortgages seasoned an average of two months. The pool reflects a high-quality borrower base: a weighted average original credit score of 750, a weighted average combined loan-to-value ratio of 69.8%, and fixed-rate loans comprising 99.9% of the pool.

Approximately 84% of loans were underwritten using alternative documentation — including bank statements, DSCR, and P&L statements — with 7.8% of loans featuring an initial interest-only period and 4.0% consisting of closed-end second-lien loans. Approximately 20.77% of loans are designated as non-qualified mortgages, with the remainder designated as QM: Safe Harbor, QM: Rebuttable Presumption, or exempt from QM rules due to business-purpose origination.

While Florida’s share of the pool has been meaningfully reduced, the state remains the largest single-state concentration and continues to be one of the most active non-QM markets in the country. Strong population growth, robust housing demand, a large base of self-employed borrowers, real estate investors, and foreign nationals — all core AD Mortgage borrower profiles — continue to drive healthy origination volume in the region. Florida’s inclusion at a measured 23% reflects a balanced portfolio construction.

This transaction follows AD Mortgage’s record-setting $602.7 million NQM2 transaction earlier this year, making ADMT 2026-NQM3 the company’s third securitization in 2026 and the latest evidence of its growing national scale.