Company: AOMN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001766478-25-000080
Chunk: 27

Company: Angel Oak Mortgage REIT, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 27
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 the year ended December 31, 2024.

21

Angel Oak Mortgage REIT, Inc.Notes to the Condensed Consolidated Financial Statements(Unaudited)

We use third‑party valuation firms who utilize proprietary methodologies to value our residential and commercial loans. These firms generally use both market comparable information and discounted cash flow modeling techniques to determine the fair value of our Level 3 assets. Use of these techniques requires determination of relevant input and assumptions, some of which represent significant unobservable inputs such as anticipated credit losses, prepayment rates, default rates, or other valuation assumptions. Accordingly, a significant increase or decrease in any of these inputs in isolation may result in a significantly lower or higher fair value measurement. The following table sets forth information regarding the Company’s significant Level 3 inputs as of December 31, 2024:Input ValuesAssetFair ValueUnobservable InputRangeAverage(in thousands)Residential mortgage loans in securitization trust, at fair value$32,074 Prepayment rate (annual CPR)3.64% - 19.83%8.48%Default rate6.94% - 42.76%16.77%Loss severity(23.04)% - 16.94%(1.96)%Expected remaining life1.33 - 5.92 years2.68 years

10.    Related Party Transactions

Residential Mortgage Loan PurchasesThe Company has residential mortgage loan purchase agreements with various affiliates of the Company. The purchase price of the loans is generally equal to the outstanding principal of the mortgage, adjusted by a premium or discount, depending on market conditions. The Company purchases the mortgage loans on a servicing retained basis. The residential mortgage loans are on residences located in various states with a concentration in California and Florida. The following table sets forth certain financial information pertaining to whole loan activity purchased from affiliates during the period and year ended as of June 30, 2025 and December 31, 2024, respectively:As of and for the Year-to-Date/Year Ended:Amount of Loans Purchased from Affiliates during the Year-to-Date/Year Ended (in thousands)Number of Loans Purchased from Affiliates during the Year-to-Date/Year EndedNumber of Loans Purchased from Affiliates, Owned and Held as of Year-to-Date/Year Ended (1):June 30, 2025$82,757 194 31 December 31, 2024$255,368 558 83