KBRA assigns preliminary ratings to ten classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2026-6 (AOMT 2026-6), a $250.6 million non-prime RMBS transaction. The underlying collateral, comprised of 381 residential mortgages, and includes a meaningful concentration of collateral that KBRA considers to be “non-prime.” All the loans are either classified as non-qualified mortgages (62.8%) or exempt (37.2%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. Angel Oak Mortgage Solutions originated 65.0% of the pool, with no other originator comprising over 10% of the collateral.

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model (REALM), an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology.