Angel Oak Capital Advisors Completes Market’s First Non-Agency Social Bond Securitization | Business

ATLANTA – (BUSINESS WIRE) – May 17, 2021 –

Angel Oak Capital Advisors, LLC (Angel Oak), an investment management firm specializing in value-driven structured credit products, announces the completion of OMT 2021-2, the first agency-less mortgage-backed securitization issued in the United States that qualifies as a social obligation.

The $ 231 million securitization is comprised primarily of non-qualifying (non-QM) mortgages entirely from affiliated mortgage lenders. The securitization, made up of 466 loans, has an average credit score of 740 and a loan-to-value ratio of 73%. The transaction was rated by Fitch Ratings and Kroll Bond Rating Agency, and the senior tranche received an AAA rating.

Angel Oak has undertaken a high level of diligence in qualifying loans for OMT 2021-2 and has adhered to the standards put in place by the International Capital Markets Association (ICMA) Social Bond Principles, the industry’s leading framework for social and green bond issuance. Angel Oak also got a second-party opinion from ISS ESG, which confirmed the alignment of AOMT 2021-2 with the standards defined by the ICMA Principles on Social Obligations.

In addition, Angel Oak developed a comprehensive framework and used in-depth data analyzes to categorize and quantify the social impact of loan-level obligations. Securitization consisted of loans that typically provide mortgage financing solutions to underserved U.S. homebuyers who are unable to borrow through traditional lending channels. These borrowers largely include self-employed people, a sector of the population that has disproportionately felt the economic pressure caused by the COVID-19 pandemic.

“The issuance of this securitization is a natural next step in our company-wide socially responsible integration program,” said Rob McDonough, director of ESG and regulatory initiatives at Angel Oak. “This focus allowed us not only to create a social bond, but also to institute the due diligence necessary to guarantee a powerful product. We have devoted a great deal of time, energy and resources to achieving this, and we are proud of our ability to execute this first securitization in the market. “

One of the key aspects that sets Angel Oak apart is the company’s vertically integrated model, which allows it to oversee and control all aspects of every loan, from inception to underwriting and securitization. Angel Oak has developed a comprehensive database that tracks loan performance and key metrics, giving the business a competitive edge. It also allows Angel Oak to develop new programs that will align with future opportunities.

“Fundamentally, this securitization remains in line with the high standards set by Angel Oak while delivering additional value through the prism of an impactful social bond,” said Namit Sinha, director of private strategies investments. “We are continually advancing our technologies and developing our practices to offer new, progressive products to our discerning investors. These capabilities take advantage of Angel Oak’s adaptability and ultimately contribute to our continued ability to deliver higher yielding opportunities in a challenging market environment.

The completion of OMT 2021-2 marks the company’s second securitization this year, totaling around $ 500 million of issuance in 2021 alone. Since Angel Oak’s first securitization in 2015, the company has been a true leader in off-branch RMBS issuance, completing 23 securitizations totaling over $ 7.9 billion.

About Angel Oak Capital Advisors, LLC

Angel Oak Capital Advisors is an investment management firm focused on providing compelling fixed income investment solutions to its clients. Backed by a value-driven approach, Angel Oak Capital Advisors seeks to deliver attractive risk-adjusted returns through a combination of stable current income and price appreciation. Its experienced investment team seeks the best opportunities in fixed income securities, with a specialization in mortgage-backed securities and other areas of structured credit.

About Angel Oak Mortgage Solutions, LLC

Angel Oak Mortgage Solutions, a leader in alternative lending solutions, is the leading wholesale provider and correspondent of non-QM loans in the country. Its team of mortgage experts have pioneered a smart new approach to overcoming today’s mortgage challenges. The team operates in 44 states, with a non-QM product line that expands the borrower base, giving partners more opportunities to grow their businesses and better serve their clients.

About Angel Oak Home Loans, LLC

Angel Oak Home Loans is a full service mortgage lender. In addition to offering traditional mortgage products, it specializes in innovative alternative lending options. Angel Oak Home Loans’ flexible and supportive approach empowers potential buyers to confidently embark on a new path to homeownership. Its experienced team of licensed mortgage advisors leads the way in providing end-to-end mortgage support and a superior customer experience.

Gregory FCA for Angel Oak Capital Advisors

Marketing Director at Angel Oak Capital Advisors



SOURCE: Angel Oak Capital Advisors, LLC

Copyright Business Wire 2021.

PUB: 05/17/2021 12:02 PM / DISC: 05/17/2021 12:02 PM

Copyright Business Wire 2021.

About Teresa G. Wilson

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