(Fort Lauderdale, FL) — A&D Mortgage, the #1 Non-QM lender in the United States, has issued its latest securitization, A&D Mortgage Trust 2024-NQM5 (ADMT 2024-NQM5). The transaction, valued at $390.6 million, is backed by a pool of 1,171 mostly newly originated non-prime residential mortgages, and closed on October 31, 2024.
This marks A&D Mortgage’s latest in a series of successful securitizations, highlighting the company’s commitment to providing flexible mortgage solutions for borrowers utilizing alternative income documentation, such as bank statements, profit and loss statements, and debt service coverage ratios (DSCRs).
Key Highlights of ADMT 2024-NQM5:
- Transaction Volume: $390.6 million
- Loan Count: 1,171 mortgages
- Loan Origination: All loans originated by A&D Mortgage or its qualified correspondents
- Average Borrower Credit Score: 735
- Weighted Average Loan-to-Value (LTV): 67.4%
- Percentage of Non-QM Loans: 35.2%
- Percentage of Investment Property Loans: 47.4%
- Credit Enhancements: The transaction features excess spread and subordination, providing additional protection to senior certificates against potential losses.
- Servicer: A&D Mortgage, with Nationstar Mortgage LLC (d/b/a Mr. Cooper) acting as the Master Servicer.
A significant portion of the pool—90.35%—has been underwritten using alternative documentation methods, catering to self-employed borrowers and investors. The inclusion of bank statement loans (38.6%) and DSCR loans (34.0%) reflects A&D Mortgage’s focus on delivering innovative solutions for non-traditional borrowers. Approximately 47.4% of the pool is secured by investment properties, providing investors with a diverse and dynamic collateral mix.
In late September, Atlas Merchant Capital, A&D Mortgage, and Imperial Fund Asset Management announced a strategic joint venture aimed at expanding the non-QM mortgage securitization market. The partnership’s first securitization under this agreement, ADMT 2024-NQM4, was launched in August 2024, quickly establishing the venture’s commitment to high-quality, non-QM asset-backed securities. This initial securitization showcased strong market demand, attracting a diverse group of investors and setting a solid foundation for subsequent transactions, including the newly announced ADMT 2024-NQM5.
“Securitization remains a crucial engine for broadening access to capital, especially within the Non-QM mortgage space. With ADMT 2024-NQM5, our second securitization in the joint venture with A&D Mortgage and Imperial Fund Asset Management, we continue to support borrowers with diverse financial profiles while providing investors with high-quality opportunities,” said Bob Diamond, Founding Partner and CEO of Atlas Merchant Capital. This transaction represents a sound investment for capital markets due to its robust credit enhancements, diversified collateral, and resilience against economic shifts. We’re proud to strengthen our collaboration with A&D Mortgage, exemplifying our commitment to delivering financial solutions that align with today’s evolving market needs.”
The ADMT 2024-NQM5 securitization has undergone thorough reviews by both S&P Global Ratings and Kroll Bond Rating Agency (KBRA), receiving favorable preliminary ratings. These independent evaluations highlight the strength of the underlying collateral and the robust credit enhancements in place to mitigate risks. The transaction’s senior classes received AAA (sf) ratings from KBRA, underscoring the securitization’s solid creditworthiness and adherence to industry standards. Both agencies recognized the quality of A&D Mortgage’s underwriting processes and the performance history of its previous Non-QM securitizations.
This securitization employs a hybrid pro-rata/sequential payment structure, ensuring timely interest payments and mitigating risks in periods of stress. The certificates benefit from excess servicing income, further enhancing their credit profile.
To learn more about the program, visit www.admortgage.com.
To learn more about investment strategies, visit www.imperialfund.com.
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About Atlas Merchant Capital
Atlas Merchant Capital LLC, founded in 2013 by Bob Diamond and David Schamis, is an alternative asset management company with offices in New York and London. Atlas invests globally in compelling opportunities, particularly within the financial services sector, through a diverse range of funds, including private equity, credit opportunities, and SPAC-focused public equity funds. The firm’s investment strategy is rooted in a long-term, partnership-based approach, leveraging its deep operating and technical expertise. Atlas’s executive team brings decades of experience from top-tier global financial institutions, including Barclays Capital, Cerberus Capital Management, Citigroup, J.C. Flowers & Co, and Fortress Investment Group. For additional information, please visit atlasmerchantcapital.com
About A&D Mortgage
As a premier direct lender, A&D Mortgage offers a full spectrum of Conventional, Government, and Non-QM loan products with 24-hour turnaround times and some of the most competitive rates in the industry. In addition to their Prime Jumbo loan product, A&D Mortgage offers programs for Prime borrowers, Foreign National borrowers, as well as borrowers with imperfect credit histories. Programs with no income verification are also offered for investment property loans. The company offers free concierge services, bank statement reviews, marketing tools and resources, and more to support the brokers they serve. In 2024, A&D Mortgage received several prestigious industry awards, including being officially verified as the #1 Non-QM Lender and a Top 3 DSCR and Bank Statement Lender by Scotsman Guide. They were also named a Top 10 Wholesale Lender by Forbes, awarded a Stevie for Innovative Mortgage Technologies, and received a Globee for Achievement in Artificial Intelligence.
About Imperial Fund Asset Management
Imperial Fund Asset Management is the investment manager for Imperial Funds founded in 2014 and headquartered in Fort Lauderdale, FL. Imperial seeks to achieve attractive risk-adjusted returns by exploiting inefficiencies in the residential and commercial real estate lending market. Imperial acquires and manages investment portfolios primarily comprised of mortgage loans, real estate debt securities, loans, and related instruments. Imperial’s team combines a deep understanding of credit, loan level analysis, acquisition and management of mortgage loans, and mortgage origination platforms. Imperial employees bring more than 55 years of combined experience in residential and commercial mortgage origination, asset and risk management, finance, capital markets, and structured finance.
A&D Mortgage, LLC is an Equal Housing Lender. NMLS ID #958660. 899 W Cypress Creek Rd, Fort Lauderdale, FL 33309. For important disclosures and state licensing information:
