AD Mortgage opens $417M securitization to investors

Florida-based AD Mortgage, which specializes in nonqualified mortgages (non-QMs) for self-employed borrowers and real estate investors, on Thursday announced the launch of a $417.15 million pool of residential mortgage-backed securities (RMBS).

The transaction is the 28th issued by the company that involves its own collateral, and it’s the 19th offering to be rated by Fitch Ratings using collateral originated and serviced by AD Mortgage under its Imperial Fund Mortgage Trust.

The RMBS package includes 1,163 loans “with certificates that are secured primarily by newly originated, fixed-rate mortgage loans,” AD Mortgage explained in a press release. The company originated about 90% of these loans, with its qualified correspondent partners accounting for the other 10%.

“AD Mortgage continues to move from strength to strength in the mortgage originations and secondary markets,” CEO Max Slyusarchuk said in a statement. “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.”

The securitization includes a range of loan types across the prime and nonprime spectrum, such as bank-statement and debt-service-coverage ratio loans. Investment property loans account for 38.6% of the pool, with non-QM loans representing 30.6%.

Loans backed by primary residences comprise 51.7% of the pool by balance, while 88.3% of the loans were originated through alternative income documentation methods.

The loans in the pool have a weighted average credit score of 748 and a weighted average combined loan-to-value ratio of 67.34%.

J.P. Morgan, ATLAS SP Securities, BMO Capital Markets Corp., Mizuho Securities USA, Barclays Capital , Morgan Stanley & Co., Nomura Securities International, Academy Securities, AmeriVet Securities Inc., and Piper Sandler & Co. were the initial purchasers of the transaction.

The transaction comes a few months after AD Mortgage secured a $250 million capital commitment from Canyon Partners to support the securitization of non-agency mortgages. That investment was designed to accelerate the joint securitization program between A&D and Imperial Fund Asset Management, enabling the issuance of up to $5 billion in non-agency RMBS deals.

AD Mortgage expanded in April when it acquired the wholesale division of Flagstar Bank from Mr. Cooper Group. Last year, it entered into a joint venture with Atlas Merchant Capital to scale its securitization platform.

The RMBS market is heating up as a recent report from Morningstar DBRS showed that the non-QM segment was responsible for a record $20.9 billion in issuance during the third quarter of 2025.

The opening of AD’s new offering came on the same day that real estate fintech Backflip closed its first securitization, a $95 million pool backed by residential transition loans.

Earlier this week, analysts at Moody’s Ratings reported that the collateral backing RMBS deals is expected to perform well in 2026 despite some likely deterioration.

The analysis found that higher-leverage loans — including conventional mortgages with debt-to-income ratios above 43% — have doubled their market share in the past four years and now account for almost 40% of new originations.