AD Mortgage completes $407M securitization, its sixth of the year

Florida-based AD Mortgage has announced the closing of AD Mortgage Trust 2026-NQM6, a $407.4 million residential mortgage-backed securities transaction that is the company’s sixth securitization of 2026. The transaction marks AD Mortgage’s 34th securitization overall and its 21st deal rated by Fitch Ratings. The deal was sponsored by Imperial Fund Asset Management, which serves as the sole securitization platform for AD Mortgage collateral. The securitization includes 1,040 residential mortgages, with roughly 79% originated by AD Mortgage. Approved correspondent lenders originated the remaining 21% under AD’s underwriting guidelines. The pool has a weighted average original FICO score of 753 and a weighted average combined loan-to-value ratio of 69.3%. First-lien loans make up 96.7% of the pool, with second liens accounting for the remaining 3.3%. Under the ability-to-repay rule, 44.9% of the loans are exempt, 31.3% qualify as safe-harbor qualified mortgages, 20.1% are classified as non-QM and 3.7% are QM loans with a rebuttable presumption of compliance. Most loans were underwritten under 12- to 24-month bank-statement or debt-service coverage ratio guidelines. Third-party due dil...