A&D Mortgage Unveils New Non-QM Securitization

A&D Mortgage, a provider of non-QM and residential mortgage-backed securities (RMBS), has announced the successful launch of its latest securitization, A&D Mortgage Trust 2025-NQM1 (ADMT 2025-NQM1). This $458.93 million transaction marks another milestone in the company’s commitment to expanding financing solutions for borrowers with diverse income profiles.

The transaction is backed by a pool of 1,290 loans, featuring a weighted average credit score of 745, and a weighted average combined loan-to-value (CLTV) ratio of 68.91%. The securitization comprises both prime and nonprime loans, including bank statement, debt service coverage ratio (DSCR), and other alternative income documentation products. Approximately 45% of the loans are investment property loans, reinforcing A&D Mortgage’s strong foothold in the non-QM lending space.

Key Highlights of ADMT 2025-NQM1

  *   Transaction Volume:  $458.93 million
  *   Loan Count: 1,290
  *   Loan Origination: All loans originated by A&D Mortgage or its qualified correspondents
  *   Average Borrower Credit Score: 745
  *   Weighted Average Combined Loan-to-Value (CLTV): 68.91%
  *   Percentage of Non-QM Loans: 38.43%
  *   Percentage of Investment Property Loans: 45.01%
  *   Credit Enhancement: Excess spread and subordination to protect senior certificates
  *   Servicer: 100% A&D Mortgage LLC

The deal includes multiple classes of rated certificates, with AAA rating assigned to the senior tranche, highlighting the strength of the underlying loan pool and the credit enhancement structure. Initial purchasers for the transaction include Nomura Securities International, ATLAS SP Securities (a division of Apollo Global Securities), Barclays Capital, BMO Capital Markets, BNP Paribas, Guggenheim Securities, Jefferies, Mizuho Securities USA, Academy Securities, AmeriVet Securities, and Piper Sandler & Co.

As part of A&D Mortgage and Imperial Fund Asset Management’s (“Imperial Fund”) ongoing efforts to enhance operational efficiency and investor transparency, the companies have partnered with Clearwater Analytics to strengthen investment reporting and portfolio management. Leveraging Clearwater’s advanced data management solutions, A&D Mortgage and Imperial Fund will refine compliance processes, improve risk assessment, and enhance reporting accuracy for institutional investors across our investment strategies.

The transaction was sponsored by Atlas A&D Opportunity Fund III LLC, with A&D Mortgage LLC serving as the loan originator, servicer, and representations and warranties provider. The deal is expected to close on March 13, 2025.