Fitch Ratings has assigned expected ratings to a new securitization from Angel Oak Mortgage Trust.

The securitization, known as AOMT 2020-5, is supported by 784 loans with a balance of $324.37 million. It will be the 11th Fitch-rated transaction consisting of loans originated by Angel Oak-affiliated companies.

The securitization consists mainly of non-QM mortgages. The majority of the loans were originated by Angel Oak affiliates including Angel Oak Mortgage Solutions (77.9%), Angel Oak Home Loans (6.8%) and Angel Oak Prime Bridge (0.2%). The remaining 15.1% were issued by third-party originators. More than 82% of the pool consists of loans designated as non-QM.

“Operational risk is well controlled for in this transaction,” Fitch said. “Angel Oak employs sound sourcing and underwriting processes and is assessed by Fitch as an ‘Average’ originator.”

Third-party due diligence was performed on 100% of the loans in the securitization, Fitch said.