AD Mortgage Closes $432.4 Million Non-QM Residential Mortgage-Backed Securities Deal

AD Mortgage closed its fifth non-qualified mortgage (Non-QM) residential mortgage-backed securities transaction of 2026 on July 15, 2026. The deal totals $432.4 million and is backed by 1,008 loans, according to company data.

The transaction marks a continued expansion of the company’s securitization pipeline. By bundling these non-traditional residential loans into tradable securities, AD Mortgage moves these assets off its balance sheet to generate liquidity for further lending operations.

AD Mortgage Securitization Details and Loan Volume

The $432.4 million transaction is supported by a pool of 1,008 individual loans. Non-QM loans typically serve borrowers who do not meet the strict underwriting criteria set by Fannie Mae or Freddie Mac, often including self-employed individuals or those with non-traditional income documentation.

This fifth deal of the year indicates a steady cadence of issuance for the firm. The volume of loans in this specific tranche suggests an average loan size of approximately $429,000 per asset within the pool.

Geographic Diversification Strategy

Company strategy for the 2026 issuance cycle focuses on geographic diversification. By spreading the underlying collateral across various regional markets, AD Mortgage aims to reduce the risk associated with localized economic downturns or regional real estate volatility.

This approach contrasts with more concentrated portfolios that rely heavily on a few high-growth states. Diversification across different U.S. geographies is intended to stabilize the performance of the mortgage-backed securities for investors.

The use of Non-QM products allows the firm to capture a broader segment of the borrower market. These loans often carry higher interest rates than conforming loans, which can increase the yield for the securities buyers, provided the credit risk is managed through the aforementioned geographic spread.