A&D Mortgage Completes Fourth Non-QM Securitization Of 2024
A&D Mortgage has successfully executed its fourth non-QM securitization of the year, valued at US$331.5 million. The centerpiece of this transaction is a US$209.6 million two-year senior note, which secured a Triple A rating and was priced at 145 basis points over Treasuries.
KBRA (Kroll Bond Rating Agency) has assigned preliminary ratings to nine classes of mortgage pass-through certificates from the ADMT 2024-NQM4 Trust, associated with this transaction. The total value of this non-prime RMBS (Residential Mortgage-Backed Securities) transaction is US$369.3 million, backed by 1,055 residential mortgages. The collateral within this transaction features a substantial portion of loans underwritten with alternative income documentation. The borrowers in this pool present a non-zero weighted average original credit score of 740 and show significant equity in their properties, with a weighted average combined loan-to-value (CLTV) ratio of 70.7%.
KBRA’s rating was determined through a comprehensive analysis using its Residential Asset Loss Model (REALM), examining third-party loan file due diligence, cash flow modeling of the transaction’s payment structure, as well as reviews of key parties and legal documentation. The full details of this methodology are outlined in their U.S. RMBS Rating Methodology.
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