AD Mortgage Unveils New Non-QM Securitization

AD Mortgage, a provider of non-QM and residential mortgage-backed securities (RMBS), has launched its fifth securitization so far this year, AD Mortgage Trust 2025-NQM5 (ADMT 2025-NQM5).

The $417.15 million transaction marks AD’s 28th securitization issued with AD-originated collateral and is the 19th transaction to be rated by Fitch featuring collateral originated and serviced by AD under the Imperial Fund Mortgage Trust. This milestone further solidifies the company’s commitment to expanding financing solutions for borrowers with diverse income profiles.

The transaction is backed by a pool of 1,163 loans, with certificates that are secured primarily by newly originated, fixed-rate mortgage loans. About 90% of the loans were originated by AD Mortgage LLC, while the remaining 10% were originated by AD Mortgage’s qualified correspondent lenders.

The pool features a weighted average credit score of 748, and a weighted average combined loan-to-value (CLTV) ratio of 67.34%. The securitization comprises both prime and nonprime loans, including bank statement, debt service coverage ratio (DSCR), and other alternative income documentation products. Loans backed by primary residences comprise approximately 51.66% of the pool by balance. Approximately 88.3% of loans in the pool were backed using alternative income documentation.

“AD Mortgage continues to move from strength to strength in the mortgage originations and secondary markets. The latest deal is a testament to the high-quality collateral that the market continues to demand, and we continue to deliver. We are proud of our accomplishments this year and look forward to a successful 2026.” – Max Slyusarchuk, CEO of AD Mortgage

Key Highlights of ADMT 2025-NQM5

  *   Transaction Volume:  $417.15 million
  *   Loan Count: 1,163
  *   Loan Origination: All loans originated by AD Mortgage or its qualified correspondents
  *   Average Borrower Credit Score: 748
  *   Weighted Average Combined Loan-to-Value (CLTV): 67.34%
  *   Percentage of Non-QM Loans: 30.60%
  *   Percentage of Investment Property Loans: 38.58%
  *   Credit Enhancement: Subordination in the form of certificates that are lower in payment priority and excess spread that preserves subordination
  *   Servicer: 100% AD Mortgage LLC

Initial purchasers for the transaction include J.P. Morgan; ATLAS SP Securities, a division of Apollo Global Securities LLC; BMO Capital Markets Corp.; Mizuho Securities USA LLC; Barclays Capital Inc.; Morgan Stanley & Co. LLC; Nomura Securities International Inc.; Academy Securities Inc.; AmeriVet Securities Inc.; and Piper Sandler & Co.