Business News and Headlines

A&D Mortgage Raises $602.7 Million in Non-Prime RMBS

A&D Mortgage issued $602.7 million of non‑prime residential mortgage‑backed securities (RMBS) through its 2026‑NQM2 transaction, backed by 1,793 loans with four months of seasoning. The pool is dominated by single‑family homes (68.4 %) and condos (20.5 %), with 48.1 % of borrowers self‑employed and underwriting relying heavily on alternative documentation. Borrowers exhibit strong financial profiles—average income $656,931, liquid reserves $170,061, and a weighted‑average FICO of 748—earning the senior tranche an AAA rating. The deal is structured with eleven tranches and includes excess spread and servicing income to mitigate losses, and it attracted major institutions such as J.P. Morgan, Barclays and Morgan Stanley.