According to HousingWire, AD Mortgage, a Florida-based lender, has closed its sixth securitization of the year. The deal, called ADMT 2026-NQM6, brought together about 407 million dollars in residential mortgages packaged as securities. This represents the company's thirty-fourth securitization overall and their twenty-first transaction that received a rating from Fitch Ratings.
The securitization pool contains just over one thousand residential loans, with AD Mortgage originating roughly 79 percent of them directly. The remaining loans came from approved correspondent lenders who followed AD Mortgage's underwriting standards. The typical borrower in this pool has a credit score around 753 and a loan-to-value ratio of about 69 percent, meaning they're putting down a meaningful amount relative to the home's value.
The loans in this pool were primarily underwritten using bank statement or debt-service coverage ratio guidelines, which tend to work well for self-employed borrowers and business owners. Importantly, every single one of the loans went through third-party due diligence review, with no material issues discovered. The company structured the deal with various safeguards for investors, including excess spread and subordination to protect the senior certificates from losses.
According to HousingWire, Imperial Fund Asset Management sponsored the transaction and serves as the exclusive securitization platform for AD Mortgage's loans. A managing director at Imperial Fund noted that reaching twenty-one Fitch-rated deals demonstrates both consistency and volume, with investors knowing what to expect when these pools hit the market. Florida accounts for just under 25 percent of the loans in this particular deal, making it the largest state concentration.
What I am seeing locally here in the Bay Area is that institutional investors continue to have healthy appetite for well-documented mortgage pools, especially those with strong credit profiles and thorough due diligence. While AD Mortgage operates out of Florida, the securitization market they're tapping into helps keep overall lending activity flowing and affects rates and availability across the country, including here in the East Bay where we're trying to move inventory in a challenging market.
