AD Mortgage closes $432.4M non-QM RMBS deal

AD Mortgage announced Monday that it completed its fifth non-QM residential mortgage-backed securities (RMBS) transaction of 2026, issuing a $432.4 million securitization backed by more than 1,000 residential mortgages.

The transaction, known as AD Mortgage Trust 2026-NQM5, is backed by a pool of 1,008 residential loans, with 99% of the mortgages originated by AD Mortgage or its qualified correspondent lenders, the company said.

The transaction, which is expected to close July 15, is supported by loans with an aggregate balance of $432.4 million as of the cutoff date, according to Fitch Ratings. The deal marks the 20th AD Mortgage Trust transaction rated by Fitch and the fourth Fitch-rated ADMT transaction of 2026.

The underlying collateral features a weighted average borrower credit score of 754 and a weighted average combined loan-to-value (CLTV) ratio of 69.1%. The securities include credit enhancement through excess spread and subordination designed to provide additional protection for senior certificate holders.

Florida properties account for the largest share of the loan pool at 24.89%, although the company said the transaction reflects its efforts to reduce geographic concentration by expanding loan originations into additional markets through its broker and correspondent network.

“The investor participation in the ADMT 2026-NQM5 transaction reflects the established cadence of our programmatic issuance platform,” said Dmitri Batsev, managing director at Imperial Fund Asset Management. “The consistent demand from a diversified institutional investor base is indicative of the underwriting standards applied to the underlying collateral and our regular presence in the market.

“Furthermore, this transaction demonstrates the ongoing execution of our strategy to reduce geographic concentration across our portfolio this year. By expanding our origination footprint regionally, we have broadened the credit profile of the pool, which has supported heightened investor engagement in this offering.”

The securitization follows AD Mortgage’s $407 million ADMT 2026-NQM4 transaction, which priced in May. The latest deal continues the company’s regular issuance schedule for non-QM mortgage-backed securities in 2026.

AD Mortgage will service all of the loans included in the ADMT 2026-NQM5 transaction.

This article was written by Sarah Wolak and generated with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.