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Since the end of the third quarter, the company has reduced its whole loan warehouse debt by 51% and the mark-to-market portion of its total warehouse debt by 62%, enabling it to “protect its capital structure to withstand volatility.”
In November, AOMR sold certain non-QM, and investor cash flow residential mortgage loans with a purchase price of $252.7 million, and $221.2 million of warehouse debt was repaid as a result of the transaction. It also sold $7 million in commercial loans to concentrate on its non-QM strategy.
“We continue to make significant progress against our strategic plan to reposition our portfolio, improve liquidity, and reduce risk, all of which were demonstrated through the loan sales and non-mark-to-market financing conversion announced in Q4, as well as the AOMT 2023-1 securitization in January 2023,” Prabhu said.
The company completed two residential non-QM securitizations, totaling $722.3 million in aggregate unpaid principal balance. Its portfolio totaled $2.9 billion of residential mortgage loans and other target assets as of December 31, a 28% gain from the previous year.
“We plan to resume purchases of newly originated, higher-coupon loans and to methodically execute securitizations throughout 2023,” Prabhu said.
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