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KBRA Assigns Preliminary Ratings to Angel Oak Mortgage Trust 2020-1 (AOMT 2020-1)

January 15, 2020 GMT

NEW YORK--(BUSINESS WIRE)--Jan 15, 2020--

Kroll Bond Rating Agency, Inc. (KBRA) assigns preliminary ratings to six classes of mortgage-backed notes from AOMT 2020-1, a $358.1 million non-prime RMBS transaction.

Angel Oak Mortgage Trust 2020-1, Mortgage-Backed Certificates, Series 2020-1 (AOMT 2020-1) is a residential mortgage-backed securities (RMBS) transaction sponsored by Angel Oak Mortgage Fund EU, LLC, consisting of collateral originated by Angel Oak Home Loans LLC (AOHL), Angel Oak Mortgage Solutions LLC (AOMS) and Angel Oak Prime Bridge LLC (AOPB), together the Angel Oak Originators. The $358.1 million transaction is collateralized by a pool of 948 mortgages, which are mostly classified as non-prime. Borrowers in the AOMT 2020-1 pool possess a non-zero WA original credit score of 720 with an WA original loan-to-value (LTV) and combined LTV (CLTV) ratios of 74.8%. The mortgage loans, seasoned approximately 2.6 months, are predominantly fixed rate mortgages (FRMs) (98.3%). With respect to the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule, approximately 80.6% of the loans were designated as Non-QM, and do not benefit from the safe harbor legal protections and are potentially at heightened risk of litigation-related losses.

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Mortgage Default and Loss Model, an examination of the results from third-party loan file due diligence, cash flow modeling, analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology.

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com )

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

View source version on businesswire.com:https://www.businesswire.com/news/home/20200115005899/en/

CONTACT: Analytical Contacts:

Gary Narvaez, Senior Director

(646) 731-2478

gnarvaez@kbra.com

Hannah Brennan, Analyst

(646) 731-3324

hbrennan@kbra.com

Sharif Mahdavian, Senior Director

(646) 731-2301

smahdavian@kbra.com

Ed DeVito, Managing Director

(646) 731-2319

edevito@kbra.com

Jack Kahan, Senior Managing Director

(646) 731-2486

jkahan@kbra.com

Business Development Contact:

Michele Patterson, Managing Director

(646) 731-2397

mpatterson@kbra.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE

SOURCE: Kroll Bond Rating Agency, Inc.

Copyright Business Wire 2020.

PUB: 01/15/2020 06:35 PM/DISC: 01/15/2020 06:35 PM

http://www.businesswire.com/news/home/20200115005899/en