AD Mortgage announces $407M non-QM securitization

AD Mortgage has launched a $407 million non-QM securitization, its fourth deal of 2026, as the company continues to diversify collateral beyond its home base in Florida and deepen its national origination footprint, the company announced on Thursday.

AD Mortgage Trust 2026-NQM4 is backed by 979 loans that are primarily fixed rate. Florida properties account for 25% of the pool, down from about 40% in transactions posted earlier this year, according to the announcement.

California and New York represent 17.2% and 14.3% of the pool, respectively, combining with Florida to account for 56.5% of the collateral.

The transaction is expected to close on May 28. Morgan Stanley & Co. LLC is the structuring lead. Initial purchasers and joint bookrunners are ATLAS SP Securities (a division of Apollo Global Securities LLC), BMO Capital Markets Corp., J.P. Morgan Securities LLC, Mizuho Securities USA LLC and Nomura Securities International Inc.

Co-managers include Academy Securities Inc., AmeriVet Securities Inc., Natixis Securities Americas LLC and Piper Sandler & Co.

Collateral profile

The newly issued pool has an average borrower credit score of 755 and a weighted average combined loan-to-value ratio of 68.4%. Fixed-rate loans make up 98.8% of the collateral, according to the company. About 6.7% of the loans feature an initial interest-only period, while 4.1% are closed-end second-lien loans.

Roughly 81.5% of the loans were underwritten using alternative documentation such as bank statements, debt-service-coverage ratio (DSCR) and profit-and-loss statements. About 22.5% of the pool is designated as nonqualified mortgages, with the balance categorized as qualified mortgages or exempted from QM rules as business-purpose loans.

AD Mortgage originated 78.3% of the loans in the pool, with the remaining 21.7% coming from qualified correspondents and other lenders. AD Mortgage is the servicer for 100% of the loans.

The securitization follows AD Mortgage’s $424.1 million 2026-NQM3 transaction that was priced in April, bringing the firm’s 2026 securitization count to four deals. Regular issuance and consistent pool characteristics are important signals for buyers of non-QM bonds, who typically favor repeat issuers with predictable structures and underwriting profiles.

AD Mortgage’s national expansion has been fueled in part by its 2025 acquisition of the wholesale and nondelegated correspondent lending businesses from Mr. Cooper, which expanded the company’s broker network to more than 9,000 partners. That growth has helped shift production beyond the company’s Fort Lauderdale, Florida, headquarters into coastal and high-balance markets such as California and New York.

“ADMT 2026-NQM4 is our fourth transaction this year, and it reflects the consistency and quality we’ve built into our origination platform,” Victor Kuznetsov, managing director of Imperial Fund Asset Management, said the announcement.

“Our growing national network continues to produce well-underwritten, high-quality non-QM collateral, and investor demand for our securitizations reflects the confidence the market has placed in the AD Mortgage program.”

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.