A&D Mortgage, Atlas Merchant Capital, and Imperial Fund Close $426.67M Non-QM Securitization

Dil Bar Irshad | May 16, 2025 | 05:31 AM IST | Breaking News, Business, World | Follow on Google News

A&D Mortgage, Atlas Merchant Capital, and Imperial Fund Close $426.67M Non-QM Securitization

A&D Mortgage, Atlas Merchant Capital, and Imperial Fund Close $426.67M Non-QM Securitization

(Fort Lauderdale, FL) – A&D Mortgage, a leading issuer of Non-QM residential mortgage-backed securities (RMBS), is pleased to announce the successful closing of its second securitization so far this year, A&D Mortgage Trust 2025-NQM2 (ADMT 2025-NQM2) on May 5, 2025. The $426.67 million transaction marks A&D’s 25^th securitization issued with A&D-originated collateral and is the 16^th transaction to be rated by Fitch featuring collateral originated and serviced by A&D under the Imperial Fund Asset Management platform. This milestone further solidifies the company’s commitment to expanding financing solutions for borrowers with diverse income profiles.

The growing demand for flexible mortgage solutions has made non-prime residential loans essential for self-employed professionals, real estate investors, and creditworthy borrowers outside traditional lending criteria. Non-QM loans fill a crucial gap in the mortgage market by serving borrowers who have strong financials but don’t fit traditional underwriting standards, such as self-employed professionals and real estate investors. By utilizing alternative documentation, these loans provide critical financing options. The recently priced $426.67 million ADMT 2025-NQM2 securitization, backed by 1,136 newly originated loans, highlights the expanding non-QM market and reinforces A&D Mortgage’s leadership alongside partners Atlas Merchant Capital and Imperial Fund Asset Management.

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“The successful closing of our second securitization this year is a testament to the ongoing enduring appeal of the non-QM market,” said Max Slyusarchuk, CEO of A&D Mortgage and co-founder of Imperial Fund Asset Management. “For 10 years now, the non-QM space has experienced spectacular growth, from originations, all the way through to the secondary market. We expect to price more deals this year.”

The ADMT 2025-NQM2 transaction underscores the strength of A&D Mortgage’s lending platform and its ability to meet evolving borrower needs:

Key Highlights of ADMT 2025-NQM2

• Transaction Volume: $426.67 million
• Loan Count: 1,136
• Loan Origination: All loans originated by A&D Mortgage or its qualified correspondents
• Average Borrower Credit Score: 742
• Weighted Average Combined Loan-to-Value (CLTV): 69.3%
• Percentage of Non-QM Loans: 37.4%
• Percentage of Investment Property Loans: 47.4%
• Credit Enhancement: Subordination in the form of certificates that are lower in payment priority and excess spread that preserves subordination
• Servicer: 100% A&D Mortgage LLC

Rated by both S&P Global and Fitch Ratings, the deal includes a split AAA-rated tranche, highlighting the strength of the underlying loan pool and the credit enhancement structure. With 100% servicing retained by A&D Mortgage LLC, the transaction emphasizes consistency in loan performance and investor security.

Initial purchasers for the transaction include Mizuho Securities USA LLC (str), ATLAS SP Securities, a division of Apollo Global Securities LLC, Barclays Capital Inc, BMO Capital Markets Corp, Guggenheim Securities LLC, Nomura Securities International Inc, Academy Securities Inc, AmeriVet Securities, and Piper Sandler & Co.

The deal not only expands capital access for underserved borrowers but also provides a compelling opportunity for investors seeking diversified mortgage-backed assets. This securitization reflects the continued growth of the non-QM sector, driven by strong borrower demand and investor appetite for diversified mortgage assets. A&D Mortgage’s latest transaction further solidifies its position as a key player in the expanding alternative lending space.

Dil Bar Irshad

Dil Bar Irshad is a seasoned journalist, hails from Jammu Kashmir's Doda, covers political, social, business stories, index stories.